California Companies Are Rushing to Find Female Board Members

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A law mandating that every public company in the state should have a woman on the board by the end of the year has redefined the qualifications of a director.

The companies that have not yet added any women tend to be young firms in the high-tech or biotech industries with small boards to begin with and relatively smaller market capitalizations, explained Kathleen Kahle, a professor of finance at the University of Arizona who has been closelyFor these companies, adding an additional board member can be costly.

“We’re trying to teach boards to let us introduce ‘board-ready’ women,” said Jeanne Branthover, a managing partner at the executive-level recruiting firm DHR International, referring to women with senior, C-Suite level experience who might have served on nonprofit boards or school boards or presented to their own boards. However, that doesn’t mean the quality of the female candidates dips, Branthover was quick to emphasize.

Board seats are being redefined as functional roles “instead of everybody being former C.E.O.s and C.F.O.s who don’t have deep knowledge of certain functions,” said Robin Toft, founder of the San Francisco-based Toft Group Executive Search, who specializes in placing women on boards. In the past year, her firm did more board searches than it had done in the past 10 years.

 

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