California Lawmakers Approve New Diversity Quotas For Corporate Boards

  • 📰 Forbes
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 53%

Business Business Headlines News

Business Business Latest News,Business Business Headlines

California passed a bill Sunday requiring corporations to include a minimum number of underrepresented people on their boards, becoming the first state to pass this type of diversity quota for board membership

requires all public companies headquartered in California to have at least one board member from an underrepresented community by 2021 and for companies to have a minimum of three by the end of 2022, depending on the size of the board.

The bill defines people as underrepresented if they self-identify as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native or as gay, lesbian, bisexual or transgender. The bill, which needs to be signed into law by Gov. Gavin Newsom requires the California Secretary of State to write annual diversity reports and to fine companies that are in violation or fail to report data with the state.that required public companies headquartered in California to have at least one female board member by the end of 2019 and for companies to have a minimum of three by the end of 2021, depending on the size of the board.

Since that law went into effect, women accounted for about 45% of new board seats among Russell 3000 companies based in California, compared with about 31% nationwide, according to Bloomberg

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

All leftwing ideologues - not very diverse.

The only thing this accomplishes is that it makes 'diverse' people feel like impostors on the board and it sends a poor message to hard-working WMs that they will be passed over for promotion.

a progressive move - shouldn't be needed if firms took initiative to do on their own

This is great progress. Finally we can now start hiring people not on the merit of their abilities, but solely on their ethnicity. Real change, thank you comrade Newsome.

Great. Now more companies employing thousands of lefties will flee to TX. Maybe that's the plan all along.

Insanity

Compliance is never the answer. More open minds are needed.

So we (meaning leftists) are going back to quotas thus ensuring that the best aren’t always selected and even when the best includes somebody from a “quota” class, many will think they only made it due to the quota. Progress?

So like NOT picking the best candidate to sit on the board to help run the company? So like NOT having the smartest at the table to run the company for the best results for employees and shareholders? But hey! At least we’ve got the required POCs and Asians!

But they also try to pass a law making it legal for state organizations to discriminate?

Not sure if they researched this properly but walking in the same footprints as Zimbabwe! Better to improve education and make it more accessible to everyone!

Welcome to Democrat’s running state!!!

Whats an underepresented person? Not may Samoans on boards of Calafornian companies? Do you get bonus points for hiring one?

This is one of the many reasons California is a complete fucking dumpster fire

When you can’t lead and persuade, do it by force

I guess California thinks companies aren't leaving the state fast enough.

Affirmative action - coming to the private sector near you!

CORPORATIONS can’t move out of CA fast enough. Some Board members are often those who have the most stock. Some board members are strictly family. Some boards choose the best for the job, not the best color of skin for the job.

Nations rise!!!! 💯🌬🔥💜👑🤟🏾

Suddenly all these corporations are changing their mailing address to their satellite offices

Forcing ppl to be inclusive is not diversity its opression. Education leads to understandong which leads to expirence of other races which ends with acceptance. Forced acceptance its not acceptance this is no more lunecy then yrump telling the kkk to acceot non whites wont work.

Sounds like a great business practice, gowokestaybroke

The token POC on a board. Imagine being THAT GUY.

So its not on qualifications...its on skin color. Got it.

Sure let’s not pick the most qualified for the job anyone, SMH 🤦‍♂️ Social justice is ruining this country.

Hopefully, California’s Homeless community, a historically underrepresented people, will finally find themselves on California’s Corporate Boards. CheckThatBox

Imagine having the choice of the best surgeon to do the job or the one who had the best skin color. That’s where we’re headed.

And that's why Folx are leaving your state left and right. The ship is going down!!

Wish it specifically was meant for BIPOC but I’ll take it for now. Nice step forward Cali👏🏿

Oh. California wants 'tokens'.

Not the BEST qualified candidate, but the one that make us meet the quota of diversity. Got it.

Pretty sure thats a Silicon Valley episode

Gross

India type of reservations...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in BUSİNESS

Business Business Latest News, Business Business Headlines