Some 140 Israeli hi-tech companies, as well as 46 funds investing in Israeli hi-tech, announced a new initiative titled 'Power in Diversity' on Monday, following an updated rule on the National Association of Securities Dealers Automated Quotations (Nasdaq) stock exchange.
From now on, all operating companies listed on Nasdaq’s US exchange will be required to have at least two diverse directors, including one who self-identifies as female and one who self-identifies as either an under-represented minority or LGBTQ.
The initiative is designed to strengthen the start-up nation through diversity and inclusion, maximize its human capital and develop the potential of every man and woman across Israeli society. According to Power in Diversity, most Israeli companies are led by males.
"I see Nasdaq's decision as a positive and significant step forward. There is no doubt that diverse companies have more potential for success," said Sivan Shimri-Dahan, partner at Qumra Capital and CEO of the Power in Diversity initiative.
"If publicly traded companies set the tone, private companies will follow and aspire to include minorities, as well as increase the number of women in key positions," Shimri-Dahan added.
Alan Peled, the founder of Power in Diversity, explained the initiative was founded to "allow hi-tech to become an inclusive environment where all of us can work and build companies in Israel."
"Diversity isn't just the right thing to do, but also the smart thing to do. Research proves diversified companies develop better products, and we are here to promote exactly that," Peled said.