Quiet DEI efforts, interesting IPO environment

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With President Donald Trump back in the White House, corporate diversity, equity and inclusion (DEI) policies are out of whack.

But they’re not entirely down to the numbers, said a public company leader who has pushed for more DEI initiatives by tech companies.

“I personally don’t think so,” Nasdaq Chairman and CEO Adena Friedman said on Yahoo Finance’s inaugural podcast at the World Economic Forum in Davos, Switzerland (video above; listen below).

Friedman was responding to corporate America’s decades-old backlash amid DEI rebounds at big companies like Meta ( Meta ) and Walmart ( WMT ).

“I can say for Nasdaq, we are very proud of what we do,” Friedman added. “We feel really good about what we’ve been able to achieve in terms of creating this culture of inclusion and ownership. And a lot of companies feel the same way I do, and I think it’s going to be a little bit more quiet.”

A federal appeals court recently rejected Nasdaq’s attempt to duplicate the company’s boards.

In mid-December, a majority conservative federal appeals court concluded that the Securities and Exchange Commission (SEC) should not approve Nasdaq regulations in 2021.

These rules require thousands of mostly tech companies to have at least one woman and one minority or LGBTQ person on their boards. A company must explain why it fails to meet this requirement. The rules also include annual board diversity disclosure.

In addition, President Trump has promised to rid the federal government of DEI mandates, with Meta founder Mark Zuckerberg calling for more. Masculinity in companies.

“I think being a CEO is a competitive existence. I’m a competitor,” Friedman said.

“But being competitive and being quietly confident—they’re not mutually exclusive. Being quietly confident, being humble, being a learner, being willing to listen to other people, that’s part of being a great CEO.”

As the Trump administration continues to loosen regulations, Friedman is leery of an eventual IPO outlook.

The IPO market has been fairly mixed in 2024, despite appearances by Reddit ( RDDT ), Viking ( VIK ), and Rurik ( RBRK ). IPOs raised about $123 billion last year, compared with a peak of $594 billion in 2021, according to D’Logic data.

Renaissance Capital 150 companies were announced last year Research.

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Traders expect the IPO market to return to high gear this year.

The public pipeline includes more than 170 companies looking to raise $11 billion in capital, Renaissance Capital said. At least 10 companies aim to raise at least $100 million and have filed for public disclosure in the past 90 days.

Energy and technology companies lead the pipeline.

“While some are skeptical that a pickup is ‘around the corner’ again, the IPO market has a stronger footing now than at any point in the last three years,” Renaissance Capital said.

“As we move into 2024, the IPO environment is getting better, but as you know, it’s been a very challenging environment for three years,” Friedman explained.

“With the new administration coming in, there’s definitely a lot, I would say, we’re more confident that there’s going to be a really fun and exciting environment for this year. But we’re waiting. It’s weighty.”

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Brian Sozzi Yahoo Finance is the editor-in-chief. Follow Sozzi on X @BrianSozzi, Instagramand on LinkedIn. Tips for stories? Email brian.sozzi@yahoofinance.com

Three times a week, Suzy presents insightful conversations with the biggest names in business and marketing at Yahoo Finance Tender opening Podcast. Find out more about us Video center. Look at you Preferred streaming service. Or listen and subscribe Apple Podcasts, SpotifyOr wherever you find your favorite podcasts.

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