Nasdaq CEO Downplays DEI Backlash, Remains Bullish on Upcoming IPOs
Davos, Switzerland - Despite recent corporate pushback against diversity, equity, and inclusion (DEI) initiatives, Nasdaq chair and CEO Adena Friedman believes they remain a priority for many companies.
"I personally do not think so," Friedman stated on Yahoo Finance's Opening Bid podcast at the World Economic Forum in Davos, referring to the notion that corporate America has abandoned DEI efforts.
Friedman emphasized Nasdaq's commitment to fostering inclusivity and belonging. "We're very proud of what we do," she said, adding that she believes many companies share this sentiment.
Friedman's remarks come amid a federal appeals court ruling striking down Nasdaq's attempt to require board diversity in listed companies. Additionally, President Trump has vowed to eliminate DEI mandates within the federal government, and Meta founder Mark Zuckerberg has called for more "masculine energy" in companies.
Despite these challenges, Friedman remains optimistic about the IPO outlook. She cited the strong performance of Reddit, Viking, and Rubrik in 2024. While the overall IPO market was mixed, data from Dealogic reveals that $123 billion was raised, a significant increase from the peak of $594 billion in 2021.
Dealmakers anticipate a more robust IPO market in 2025. The pipeline currently includes over 170 companies seeking to raise $11 billion. Energy and tech companies lead this pipeline.
"The IPO environment was getting better as we went through 2024," Friedman noted. "With the new administration coming in, there's definitely more certainty that there could be a really interesting and exciting environment for this year."