The Nasdaq mandate will expand diversity in business — and that’s good for business

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The Nasdaq requirement takes on crony capitalism, which for far too long has allowed powerful people to make decisions in the interests of their own restricted group and reserve the spoils of business performance for their own use. Homogenous board compositions built from existing networks, and from playing the game of “who knows who” is an unacceptable way to fill board seats, even if discrimination and preservation of power are unintentional. The new Nasdaq rule forces nominating committees to find the “hidden figures” with enormous talent, albeit different networks and backgrounds.

Women have been getting the majority of all bachelor’s and master’s degrees for decades yet hold only 8.1 percent of the CEO positions among the Fortune 500. Our research at the Women’s Power Gap Initiative on leadership in the higher education industry found that while women of color were earning 16 percent of all PhDs, they made up only 2 percent of the…

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