ABA, Trade Groups Urge Senate to Pass Board Diversity Bill

The American Bankers Association joined several other financial trade groups in urging the House Committee on Financial Services to advance H.R. 1277, the Improving Corporate Governance through Diversity Act of 2021. 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 was introduced by Rep. Gregory Meeks (D-N.Y.) and 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.” The bill previously passed the House in a bipartisan vote in 2019.