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Improving Corporate Governance Through Diversity Act of 2023

3/12/2024, 5:12 PM

Summary of Bill S 2007

Bill 118 s 2007, also known as the Improving Corporate Governance Through Diversity Act of 2023, aims to promote diversity within corporate boards in the United States. The bill requires publicly traded companies to disclose information about the gender, racial, and ethnic diversity of their board members and executive officers.

Under this legislation, companies must report the demographic composition of their boards and executive teams to the Securities and Exchange Commission (SEC) on an annual basis. This information will be made publicly available to investors and the general public, allowing for greater transparency and accountability in corporate governance.

The bill also encourages companies to prioritize diversity in their board recruitment and selection processes. By promoting diversity at the highest levels of corporate leadership, the legislation aims to improve decision-making, foster innovation, and enhance overall corporate performance. Overall, the Improving Corporate Governance Through Diversity Act of 2023 seeks to address the lack of diversity in corporate boardrooms and promote greater inclusivity and representation within the business community.

Congressional Summary of S 2007

Improving Corporate Governance Through Diversity Act of 2023

This bill requires certain issuers of securities to disclose the racial, ethnic, and gender composition of their boards of directors and executive officers, as well as the status of any of those directors and officers as a veteran. It also requires the disclosure of any plan to promote racial, ethnic, and gender diversity among these groups.

The Securities and Exchange Commission must establish a Diversity Advisory Group to report on strategies to increase gender, racial, and ethnic diversity among board members.

Current Status of Bill S 2007

Bill S 2007 is currently in the status of Bill Introduced since June 15, 2023. Bill S 2007 was introduced during Congress 118 and was introduced to the Senate on June 15, 2023.  Bill S 2007's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of June 15, 2023

Bipartisan Support of Bill S 2007

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
18
Democrat Cosponsors
18
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 2007

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill S 2007

Improving Corporate Governance Through Diversity Act of 2023
Improving Corporate Governance Through Diversity Act of 2023
A bill to amend the Securities Exchange Act of 1934 to require the submission by issuers of data relating to diversity, and for other purposes.

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