England will not mandate gender diversity on corporate boards, according to a new report commissioned by the British government last week. Instead, the commission recommends that companies should aim for a minimum of 25% female representation by 2015. It calls on CEOs to be more transparent about corporate leadership make-up, suggesting that companies disclose the proportion of women on boards, the number of women executives and total number of women employees on an annual basis.
We think the SEC should take note: Here at home the SEC has asked U.S. companies to be more transparent about gender diversity – but it hasn't defined diversity. The SEC should put a stick in the ground and define board diversity as we do: 20% women by 2020.