In this new memo: "What Directors Need to Know in 2018 About Board Diversity," Hughes Hubbard & Reed Partner and former SEC Commissioner Roel Campos recaps the largely institutional investor-driven pressure on boards to increase their diversity, and suggests boards "embrace" this new reality rather than resist it based on views that may seem reasonable (e.g., beliefs that business and professional skills trump diversity), but will no longer suffice in today's environment. Given the importance to investors, Campos also recommends that boards adopt board diversity policies (which he characterizes as an evolving best practice), and report annually on the policy's effectiveness and the board's current diversity.
Campos suggests these sample board diversity policies for consideration:
Particularly noteworthy in Detour Gold's policy is this provision on executive search requirements: "Any search firm engaged to assist the Board or a committee of the Board in identifying candidates for appointment to the Board will be specifically directed to include diverse candidates generally, and multiple women candidates in particular."