Nasdaq Diversity Rules Give Investors More Tools in Proxy Fights

New Nasdaq Inc. rules meant to boost corporate board diversity are giving investors new ammunition to call out companies falling behind in adding women and minority directors.

The stock exchange’s rules, approved by the SEC last week, aim to push companies to get more serious about not just recruiting qualified directors from underrepresented communities, but also push stragglers to disclose why they’re falling behind.

Under Nasdaq’s rules, companies on the exchange are required to have at least one female board member and at least one who identifies as an underrepresented minority or LGBTQ—or provide statements explaining why they can’t ...