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California Companies Are Rushing to Find Female Board Members
New York Times ^ | December 17, 2019 | Alisha Haridasani Gupta

Posted on 12/19/2019 10:35:37 AM PST by karpov

...

In September 2018, California became the first state to legally compel corporate board diversity with a law mandating that every public company in the state have at least one female director by the end of 2019. The law set off a scramble to find hundreds of female directors, many of whom don’t fit the traditional mold.

If companies fail to comply with that mandate, they face a one-time fine of $100,000.

By the end of 2021, the law’s requirements ramp up, compelling companies with five board members to have at least two female directors and at least three on six-person boards. If companies continue to break the law, they face a steeper penalty of $300,000 for every seat that should be filled by a woman.

The text of the law, signed by former Gov. Jerry Brown, cites several studies that found an association between diverse boards and enhanced company performance, though researchers also emphasized that the link wasn’t evidence of cause and effect.

For years, governments across Europe have been pushing similar efforts, with Norway becoming the world’s first country to put in place a gender quota in 2008, and France, Germany, Spain and Italy following suit.

But the California mandate isn’t without controversy.

Two lawsuits filed this year argue that the law is unconstitutional because it “seeks to force shareholders to perpetuate sex-based discrimination,” according to one of the plaintiffs, Creighton Meland Jr., a shareholder in OSI Securities.

In the U.S., women hold about 20 percent of board seats at companies listed in the Russell 3000 stock index, up from 17 percent in 2018, according to the nonprofit 2020 Women on Boards. Of the more than 600 companies based in California that are listed on a major stock exchange, almost one-third had no women on the board

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: quotas
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Related threads: Investors Penalize Companies for Adding Women to Their Boards

California Sued Over Law Requiring Corporations To Adopt Woman Quotas

California’s Board Diversity Tax A study finds that a director mandate cost companies $60 billion.

1 posted on 12/19/2019 10:35:37 AM PST by karpov
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To: karpov

Would Bruce Jenner count?

I’ll claim I’m female for 300K a year. Of course, anything beyond that is gonna cost extra....


2 posted on 12/19/2019 10:37:04 AM PST by PGR88
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To: karpov

I presume that the State of California has added some Vagina Inspectors to the payroll to ensure compliance with this law.


3 posted on 12/19/2019 10:37:10 AM PST by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer)
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To: karpov

Its a retarded law.

Bit thats what you get with socialist totalitarians.


4 posted on 12/19/2019 10:37:25 AM PST by Secret Agent Man (Gone Galt; Not Averse to Going Bronson.)
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To: karpov

They’re probably going to have to settle for tranny “women”. After all, it is California.


5 posted on 12/19/2019 10:37:29 AM PST by FlingWingFlyer (You can vote your way into socialism but you have to shoot your way out of it.)
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To: karpov

How hard can this be?

Do members of the state legislature lack daughters who are as qualified as Hunter Biden?


6 posted on 12/19/2019 10:38:07 AM PST by null and void (The government wants to disarm us after 243 yrs 'cuz they plan to do things we would shoot them for!)
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To: karpov

So if an existing member of an all male board decides to identify as a woman is the corporation in compliance?


7 posted on 12/19/2019 10:38:37 AM PST by kennedy (No relation to those other Kennedys.)
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To: Secret Agent Man
Retarded is an extremely mild and inadequate descriptor.
8 posted on 12/19/2019 10:40:25 AM PST by SpaceBar
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To: karpov

Nothing like having a gubamint that runs businesses and sets their rules as they deem proper to make an economy hum., Huh?

Ol’ MoonBeam. His Pap must be real proud of his progeny and the hell they have wrought since he passed.


9 posted on 12/19/2019 10:40:43 AM PST by NormsRevenge (Semper Fi - Monthly Donors Rock!!!)
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To: PGR88

Bruce Gender would be perfect. “Here’s your female quota.”


10 posted on 12/19/2019 10:40:57 AM PST by deadrock
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To: karpov
No one suing over the law?

No one using the grace period to relocate out of state?

11 posted on 12/19/2019 10:41:01 AM PST by Salman (The Democrat agenda in one word -- revenge.)
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To: Salman

Note the 2nd thread I linked to.


12 posted on 12/19/2019 10:41:59 AM PST by karpov
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To: karpov

Just have the existing board members draw straws, and one of them gets to wake up tomorrow morning identifying as a female.


13 posted on 12/19/2019 10:42:05 AM PST by meadsjn
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To: karpov

So many on the right laugh at California when businesses bolt the state because of idiotic laws such as this one. Then reality hits when such businesses land in a red state and bring with them a liberal ideology and left-leaning workforce.


14 posted on 12/19/2019 10:42:18 AM PST by CatOwner
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To: Buckeye McFrog

I presume that the State of California has added some Vagina Inspectors to the payroll to ensure compliance with this law.


Reminds me of a hilarious T-Shirt slogan:

“I’m not a gynecologist, but I’d be happy to take a look.”


15 posted on 12/19/2019 10:42:31 AM PST by cuban leaf (The political war playing out in every country now: Globalists vs Nationalists)
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To: karpov

Mussolini would love califorqueya.


16 posted on 12/19/2019 10:42:57 AM PST by budj (combat vet, 2nd of 3 generations)
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To: PGR88

Hahahahahaha...

Of all the stupid things that can be done by a government to a business, this ranks in my opinion as one of the stupidest and most useless regulations.

Well, that is California, and probably soon to be some of us as well.

My sympathies to those conservatives in California, and there are plenty of them.

California is like Massachusetts on a larger scale, and they have corrupted the political process to the point where the odds are stacked against non-Leftists.

They have institutionalized that corruption of the political process.


17 posted on 12/19/2019 10:42:59 AM PST by rlmorel (Finding middle ground with tyranny or evil makes you either a tyrant or evil. Often both.)
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To: karpov

My wife just retired. Dr. mrs. jimfree would be a great director.


18 posted on 12/19/2019 10:43:16 AM PST by jimfree (My19 y/o granddaughter continues to have more quality exec experience than an 8 year Obama.)
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To: PGR88

Hell, before we all got woke, I thought I’d have to pass a physical. Now all I’d need to do in CA is shave my legs and pits, let my hair grow out, color it green, and self-declare as a woman, penis and testicles be damned. I’d be a shoe in for any CA board.


19 posted on 12/19/2019 10:44:31 AM PST by libstripper
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To: karpov

This California law is a hellish combination of fascist and insane. And where will it stop? If a dealership employs auto mechanics, will CA eventually demand that half of them be female?


20 posted on 12/19/2019 10:47:46 AM PST by Leaning Right ( I have already previewed or do not wish to preview this composition.)
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