California Has Become the First State to Require Women to Be on Corporate Boards
As of recently a fourth of publicly held corporations with headquarters in California do not have any women on their board of directors, to make change California has now required publicly traded companies to include women on their board of directors a law passed and signed by Gov. Jerry Brown.
It will require at least one female director on each board of California- based corporations by the end of 2019, and by the end of 2021 companies will need up to three female directors depending on the number of board seats. This new law has raised tons of objections, and legal concerns and Gov Brown came back saying “I don’t minimize the potential flaws that indeed may prove fatal to its ultimate implementation,” Brown wrote in a signing statement. “Nevertheless, recent events in Washington, D.C. — and beyond — make it crystal clear that many are not getting the message.”
Multiple European countries already require corporate boards to include women, these countries being Norway and France to name a couple. Sen Hannah-Beth Jackson authored the bill and stated having more women on board will make companies more successful. I might be biased, but I have to agree with her. Women are amazing multitaskers and tend to work well with collaboration, more women in power can also help minimize sexual assault and harassment
in the workplace.
Many argue that the makeup of corporate boards should be no decision of the government and believe the new law will prioritize gender over other aspects of diversity, i.e., race and ethnicity. Companies can be fined up to $300,000 if found in violation. Do you think this law will help place more women in higher places? And which states will be next to follow suit?