California will require public companies to have diverse boards

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'It is clear we can no longer wait for corporations to figure it out on their own,' one lawmaker says.

California will require publicly traded companies headquartered in the state to add minority board members by the end of 2021 under a first-in-the-nation bill signed into law by Gov. Gavin Newsom on Wednesday.

“The lack of diversity on California’s boards and upper-level corporate positions is a challenge we urged corporations to address on their own during our time in the Legislature,” Assemblymember Christina Garcia, D-Bell Gardens, who co-wrote the bill, said in a statement. “However, it is clear we can no longer wait for corporations to figure it out on their own.”

Stephanie Creary, an assistant professor of management at Wharton Business School who has published research on diversity in business, called the law “extremely progressive” and said, “This is a quota, no disagreement about what this is. We already know there will be lawsuits.”

 

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Inteligence is no longer an issue

Nothing like government force on the free market to make everybody worse off

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