Amazon, the online retail giant, is set to now include minority candidates and women in the board search of the company going forward, after complaints from shareholders regarding the lack of diversity of the company.
In a public filing that was done on Monday, Amazon promised to include “women and minority candidates” in the pool from which the board committee of the company chooses candidates for its directors. The committee charter of the company has been updated to include the relevant language as well.
In a statement, Amazon said regarding the changes: “This policy formalizes a practice already in place.”
The said change comes following certain shareholders, initiated by a group that is called CtW Investment Group, expressed complaints regarding the lack of diversity in the board and senior leadership of the company. In a letter that was released last April, CtW suggested adopting a “Rooney Rule,” which would require the firm to include minority candidates and women in the pool from which its directors are being chosen.
The board of Amazon had initially opposed the said proposal, reporting in a proxy filing that the firm already “seeks out candidates with a diversity of experience and perspectives, including diversity with respect to race, gender, geography, and areas of expertise.”
Currently, Amazon has 3 women that are members on the 10-member board of the company. As reported by CNBC previously, the leadership of the firm has historically lacked representation from women,
The representative of CtW Investment Group was not immediately available to issue a comment regarding the matter.