California becomes 1st state to require women on corporate boards

A fourth of publicly held corporations with headquarters in California don’t have any women on their boards of directors. These companies have not done enough to increase the number of women on their boards despite the Legislature’s urging, making government intervention necessary, Jackson said.
“This is one of the last bastions of total male domination,” she said. “We know that the public and business are not being well-served by this level of discrimination.”
The California Chamber of Commerce argued that the composition of corporate boards should be determined internally, not mandated by government. The chamber said the new law will prioritize gender over other aspects of diversity, such as race and ethnicity.

“It creates a challenge for a board on achieving broader diversity goals,” said Jennifer Barrera, senior vice president for policy at the chamber.

The new policy will be difficult for companies to implement and violates constitutional prohibitions against discrimination, she said.

The law applies to companies that report having their principal executive offices in California. Companies can be fined $100,000 for a first violation and $300,000 for subsequent violations.

The law also requires companies to report their board composition to the California secretary of state and imposes a $100,000 fine if a company fails to do so.

Article Appeared @https://abc7chicago.com/business/california-becomes-1st-state-to-require-women-on-corporate-boards/4378466/

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