Thread by @caroljsroth

Board diversity thread re @Nasdaq’s diversity quota—

I have been a public company director; I’m currently a private company director and let me tell you why this is a horrible idea...

wsj.com/articles/nasda…

First, is board diversity an issue. Yes. Boards in general are packed with cronies and people not willing to "go against the crowd".

Diversity is a good and important factor for corporate governance and otherwise, but quotas make me uncomfortable...

Diversity is valuable because it ensures a variety of perspectives, experiences, networks & thought processes are included in the company’s management or governance. This gives companies a richer pool of information to draw from and more thoughtful customer & stakeholder outcomes

But, what is diversity? Is it only gender, skin color, sexual orientation or other immutable characteristics, or is it diversity of opinion and experience? How is this measured & accounted for? Having diversity to check a box is in polar opposition to its intention and benefit...

As a woman on boards, does a quota help or hinder me in doing my job? Being perceived as a token hire anywhere can be devastating for doing your job well and this is particularly the case on corporate boards...

How do you earn the trust of the other directors, build consensus and generally get taken seriously if it is perceived that you are there based not on experience, but because you check a box?

What I would suggest to Nasdaq and others who want to help in this area is to make relevant introductions so that we equalize opportunities and then let individuals earn the positions on merit...

Also, companies need to change profiles they create for director candidates. If searches only include people with C-level or P&L experience, for example, they will inevitably be missing other qualified and diverse candidates who have had different professional paths...

It’s great @Nasdaq wants to make an impact in an important area but I urge them to focus on more equality in opportunities, instead of trying to rig equal outcomes. Provide access, but ultimately, let everyone compete on merit—that’s best for the directors, company & shareholders