Top mutual fund manager Vanguard Group Inc will ask companies

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  • 30 Aug 2019
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Vanguard Seeks More Boardroom Diversity and Wants Details

Top mutual fund manager Vanguard Group Inc will ask companies to disclose the gender, age and race of their directors, adding pressure on U.S. companies to diversify their leadership. Vanguard gave the guidance in its annual stewardship report. With about $5 trillion under management and known for products like the Vanguard 500 index fund, the firm wields much influence over executives and directors at major U.S. companies. In addition to diversity measures, Vanguard asked boards to spell out their views on diversity, to broaden their search for minority candidates, and “to prioritise adding diverse voices.” Pressure has grown on U.S. companies to bring more women into senior leadership roles in recent years. It has been hastened by the #MeToo movement, a response to accusations of sexual assault and harassment in Hollywood and elsewhere. Vanguard has said in its report that it only wants descriptions on an aggregate basis whereas other companies, such as Regional Management Corp, have gone further by detailing the specific race and gender of company directors.

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Reuters

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