WASHINGTON–A number of trade groups, including the American Bankers Association, have sent a letter to the Senate Committee on Banking, Housing and Urban Affairs urging it to pass H.R. 5084, the “Improving Corporate Governance through Diversity Act of 2019,” which the House of Representatives passed in November 2019.
“Our associations and members support efforts to increase gender, racial, and ethnic diversity on corporate boards of directors, as diversity has become increasingly important to institutional investors, pension funds, and other stakeholders,” the group’s wrote. “According to PwC’s 2019 Annual Corporate Directors Survey, 94% of board directors surveyed indicated that a diverse board brings unique perspectives, 87% responded that diversity enhances board performance, and 84% responded that it improves relationships with investors. In addition, 76% of directors agree that board diversity enhances the performance of the company.”
The letter states the “Improving Corporate Governance through Diversity Act of 2019” would establish a model to organically boost diversity on boards through disclosure.
“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 letter concludes.
In addition to the ABA, it was signed by the Bank Policy Institute, the Financial Services Forum and the International Council of Shopping Centers.