Coalition Letter on H.R. 5084, the "Improving Corporate Governance through Diversity Act of 2019"

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July 27, 2020

Dear Chairman Crapo and Ranking Member Brown:

The undersigned organizations respectfully request that your committee pass H.R. 5084, the “Improving Corporate Governance through Diversity Act of 2019,” which the House of Representatives passed in a strong bi-partisan vote in November 2019.

Our associations and members support efforts to increase gender, racial, and ethnic diversity on corporate boards of directors, as diversity has become increasingly important to institutional investors, pension funds, and other stakeholders. According to PwC’s 2019 Annual Corporate Directors Survey, 94% of board directors surveyed indicated that a diverse board brings unique perspectives, 87% responded that diversity enhances board performance, and 84% responded that it improves relationships with investors. In addition, 76% of directors agree that board diversity enhances the performance of the company.[1]

The “Improving Corporate Governance through Diversity Act of 2019” would establish a model to organically boost diversity on boards through disclosure. This legislation would also establish an advisory group that would carry out a study and provide recommendations on private sector strategies to increase gender, racial and ethnic diversity among boards of directors.

We urge you to consider H.R. 5084 and look forward to working with you on this important legislation.

Sincerely,

American Bankers Association

Bank Policy Institute

Financial Services Forum

International Council of Shopping Centers

Nareit

National Association of Investment Companies

National Bankers Association

National Black Chamber of Commerce

National Business League, Inc.

National Investor Relations Institute (NIRI)