More and more investors are holding companies accountable for reporting on and disclosing the diversity of people on their board, which could incentivize companies to do more in terms of their DEI efforts.
During a Fireside Chat with DiversityInc CEO Carolynn L. Johnson titled “The Link Between DEI and Financial Performance,” Jose Minaya, CEO of financial planning company Nuveen, said the SEC’s approval of the Nasdaq’s request to require board diversity disclosures for companies listed on its stock exchange will fuel transparency and accountability when it comes to practicing and reporting on DEI.
Minaya said some thought what Nasdaq did was bold, which he said is “interesting it’s even considered bold.” It simply requires companies to hold themselves accountable and be transparent, which in turn could possibly lead to companies better diversifying the people on their board.
What does transparency mean in terms of workforce analytics, Carolynn asked. What is Nuveen looking for in transparent reporting from the companies it works with?
Minaya said Nuveen pushes firms to better disclose numbers and helps them appreciate the risks of not having diversity in the company. This helps them improve their businesses, the demographics of their clients and realize the importance of frontline workers.
Companies like Nuveen that work with external clients can help organizations better prioritize diversity and learn from clients. Prioritizing different focuses might help you glance back at your numbers and realize that maybe you’re doing a good job of hiring women but the number of Black executives is lacking.
Working with external clients and looking back at your internal numbers “opens up your mind to, why is this and how were we not focused on this,” he said.
He added that diversity numbers need to be inclusive and they need to be reported on and that companies “all have work to do.”
“We should absolutely not just put numbers out that make us look good,” he said.
Watch the full session below.