ABA, Business Groups Urge Senate to Pass Board, Exec Diversity Bill

The American Bankers Association joined the U.S. Chamber of Commerce and several other financial and business trade groups in urging the Senate Banking Committee to advance the Improving Corporate Governance through Diversity Act (H.R. 5084), which passed the House in a bipartisan vote in 2019. The bill would require public companies to disclose annually the self-reported racial, ethnic and gender composition and veteran status of their board members, board nominees and executive officers, as well as whether they have adopted policies or strategies to promote board and executive diversity.

The bill—introduced by Rep. Gregory Meeks (D-N.Y.)—would “establish a model to organically boost diversity on boards through disclosure,” the groups said. “This legislation would also establish an advisory group that would carry out a study and provide recommendations on private sector strategies to increase gender, racial and ethnic diversity among boards of directors.”