California Corporate Boards Making Room for Women Directors

California Corporate Boards Making Room for Women Directors

California enacted a new law requiring publicly traded corporate firms with headquartered executive offices in CA to have at least 1 woman on their board of directors. Will this go nationwide?

Coming Soon
Total Votes : 32

Scroll down to see how people across America voted.

Jimmy Carter once said, “Whatever starts in California unfortunately has an inclination to spread.” Unfortunately, or not, the golden state has started something once again and this time, “yet another glass ceiling” has been shattered, as Senator Jackson puts it.

The aged phrase “ladies first,” has always been a sign of courtesy and perhaps professional women will now gracefully breeze through the corporate door that has been open for them.

California is stepping up to address the problem of longtime male-dominated spaces in boardrooms, according to Refinery29. The state has enacted a new law demanding publicly traded corporate firms with “principal executive offices” to have at least one woman on their board of directors by the end of 2019. Also, by the close of 2021, the law requires companies that have five directors to add two women, and those with six or more to add at least three women. Moreover, companies that don’t follow through with the new law within the time frame will encounter penalties up to $300,000.

The bill was introduced by two Democratic women, state Senators Hannah-Beth Jackson and Toni Atkins. It was passed in both the state’s House and the Senate. On Twitter, Sen. Jackson wrote, “Women will finally have a seat at the table in corporate boardrooms.” She also noted that “corporations will be more profitable. This is a giant step forward for women, our businesses and our economy.”

Moreover, this measure, signed by Governor Jerry Brown is the first of its kind in the U.S. Therefore, officially making California the first state to mandate diversity in corporate boards. It’s worth mentioning that giant companies like Apple, Wells Fargo, Intel, Hewlett Packard, Uber, and more are all headquartered in the golden state.

With new laws, comes new controversy and some are opposing government-mandated quotas. Those against them, consider that companies are put under a lot of pressure by media sources and more. There is a believed intrusiveness in this law that takes away the CEO’s choice of board candidates, it is believed that they may be taking away the best and the brightest from the running to make room for a female representative. According to an interview with the San Diego Union-Tribune, Kelly Cunningham of the San Diego Institute for Economic Research believes that this requirement is “counterproductive and violates intention, reasoning, and legality of U.S. and California constitutions, and the Civil Rights Act.”

Overall, however, the response has been welcoming. Amidst the slow progress of corporate spaces that are still mainly white, and male-dominated, some see this as a refreshing change.

Co-sponsors Sen. Jackson and Sen. Atkins cited studies showing that within the corporate realm, gender parity could take as long as 50 years to achieve, that is if active measures aren’t taken. So, California being the first state to step up with this new law, promises precedent for future legislation addressing these significant issues. Read more about the story on Refinery29 here.


Here’s how people on the Zip app are weighing in on this all over the country!

California enacted a new law requiring publicly traded corporate firms with headquartered executive offices in CA to have at least 1 woman on their board of directors. Will this go nationwide?

Totals
10% Yes, year of women
90% No, that’s a stretch
Males
9% Yes, year of women
91% No, that’s a stretch
Females
10% Yes, year of women
90% No, that’s a stretch

Yes, year of women

No, that’s a stretch

California Corporate Boards Making Room for Women Directors


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