California Is 1st State To Require Women On Corporate Boards

[appalachiablue]

Source: Associated Press

6 hrs. ago.

SACRAMENTO, Calif. — California has become the first state to require publicly traded companies to include women on their boards of directors, according to a law signed Sunday by Gov. Jerry Brown.

The measure requires at least one female director on each board of California-based corporations by the end of next year. Companies would need up to three female directors by the end of 2021, depending on the number of board seats.

The Democratic governor referenced the objections and legal concerns that the law has raised. "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."

Some European countries, including Norway and France, already mandate that corporate boards include women. - More...


Read more: https://www.msn.com/en-us/news/other/california-is-1st-state-to-require-women-on-corporate-boards/ar-BBNLAGg

[truthisfreedom]

1. Hard to imagine it being a bad thing.

[FBaggins]

6. True... but it's also hard to imagine it being found to be constitutional

Under either the state or federal constitution.

[ProfessorPlum]

13. why is that? corporations are legal fictions

and we are free to make rules for them as we see fit. What would be the constitutional objection to this, either on the state or federal level?

[FBaggins]

14. There's no problem with making rules for corporations

The problem is a government setting a rule that sets up a quota system based on race/sex/etc.

[ProfessorPlum]

18. Race might be an issue

but there is no Equal Rights Amendment. If there were, a gender-based quota might be a problem. Or am I reading that wrong?

[FBaggins]

19. I think you are reading that wrong

Even without an ERA... because most court rulings in this have been from the equal protection clause.

[ProfessorPlum]

20. Hmm. ok, thank you

it will be interesting to see how far this gets

[appalachiablue]

2. On this we're behind other advanced countries in govt. and business.

"Trudeau gives Canada first cabinet with equal number of men and women." Ethnically diverse ministers include 15 men and 15 women. PM Justin Trudeau hails ‘a cabinet that looks like Canada,’ The Guardian, Nov. 4, 2015.

https://www.theguardian.com/world/2015/nov/04/canada-cabinet-gender-diversity-justin-trudeau

[iluvtennis]

4. I love that! The gov't leadership looks like the country. That's the way it should be in the US.

Last edited Mon Oct 1, 2018, 04:29 PM - Edit history (1)

[lagomorph777]

25. Yeah, and it seems Canada is better-looking than the US.

[Nitram]

8. The difference is that it was voluntary on Trudeau's part.

[roamer65]

3. God bless Jerry Brown and CA.

[bucolic_frolic]

5. I just don't know

Conservative women are still conservative. The Betsy DeVos's of the world are still Betsy DeVos. You can still get SHS types. If the law is a statement about moderation and less-edgy policies, I don't think this is much help. The women could also be largely ignored.

Affirmative action based on gender for corporate boards.

[Nitram]

9. Good point, bucolic. The law will not necessarily improve decision-making on boards. But it will

start to give women representation on powerful decision-making arenas.

[MrsCoffee]

10. It's about women having a say in the world. About making decisions that don't

tilt in favor of hostile workplaces. Equal pay. Equal consideration.

Believe it or not, most women (Republican, Democrat, Green, Independent, whatever), aren’t fond of sexual harassment, having less opportunities or being paid less than their male counterparts. Trump’s fans are not the norm. Neither are the women in his administration.

[laserhaas]

12. Spot On

[iluvtennis]

26. +++ agree.

[bucolic_frolic]

17. Yes but

those are political/cultural/social/equality considerations. While corporations may well wish to make a statement in those areas, and be equitable, is bringing a female presence to the board going to get it done? Will the predominantly male boards listen to the perspective, or only when it might result in lawsuits. I'm not arguing with you, just playing devil's advocate for something that doesn't seem to me an absolutely guaranteed result of gender rebalancing of corporate boards. And some issues - family leave, freedom to choose the healthcare you want - affect both genders. Legislation targeting equality would put teeth into equality instead of token representation on the BOD. Think Clarence Thomas. Did he change anything for the black community?

[Nitram]

7. If passing this law will start breaking down a barrier against women, then bring it on!

The only downside I can imagine is that if the same is considered for other minorities, it could get very complicated.

[Bayard]

21. Agreed

The board room could get pretty crowded.

[laserhaas]

11. Governor Brown is doing a lot more, as Gov - then, as AG

Jerry is on a roll, as of late....

[OnlinePoker]

15. Board of directors is elected by the shareholders

What if nobody votes for a potential female candidate? Also, minimum number of directors in a corporation in California is 3. If these positions are already filled by males who decides who must leave, especially if the majority of shareholders are happy with the way the corporation is being run as it is?

[Odoreida]

16. Sweden did it and nothing bad happened.

But Sweden isn't California.

It will be very easy to evade.

Imagine trying to prove that some woman (paid to be there and keep quiet) isn't "really" a director.

[FakeNoose]

22. This sort of reminds me of the Rooney rule in football

Are you guys familiar with the Rooney Rule? About 10-12 years ago the NFL passed a resolution that every time an NFL team is looking for a new head coach they have to interview at least one POC candidate. They don't have to hire the POC candidate, just make sure they get an interview.

At first the team owners were all dragging their feet and trying to find ways to avoid it. But after a few years it became accepted and it has led to many more blacks accepted into management, both as coaches and team managers. And why shouldn't they be the most qualified candidates - when the greater percentage of NFL players are now POC? Not all great players can become great coaches or managers, but those who are should have the opportunity to do so.

So my point is that this law would just open a few windows in the glass ceiling, and the qualified women will step forward in time.

[LisaM]

24. Exactly. The NFL coaching scene is now much more diverse.

That rule worked.

[iluvtennis]

27. I didn't realize the Rooney Rule existed - I learned something today. Thanks.

[CrispyQ]

23. I think it's a great idea. Why not try it out & see what happens?

O'Leary is one of the regular millionaire/billionaire investors on Shark Tank.

Kevin O'Leary: Why I Prefer to Invest in Women-Led Businesses
On stage at Inc.'s Women's Summit, the famous investor discussed how he chooses businesses on the show.

https://www.inc.com/emily-canal/kevin-oleary-women-led-companies-shark-tank-inc-womens-summit.html

snip...

O'Leary has invested in more than 40 companies across Shark Tank's nine seasons. His company, O'Shares Investment, found that about 95 percent of the women-led companies met their financial targets, compared with just 65 percent for businesses with male leaders.

"That's because men were setting targets that were not achievable. Maybe that's the aggressive nature of how they work," O'Leary said. "Women don't waste time."

Women don't waste time. I remember back when I was a project manager & conducted weekly meetings, a male colleague came up to me after a meeting & said that I ran the most efficient meetings he'd ever been to.

[DrToast]

28. I'm for more women being involved in corporate boards

But I’m unsure how I feeling about mandating it.