Catherwood LibraryILR School

A California state senator has co-authored a bill that would require greater gender equality in public boardrooms, mandating that public companies headquartered in the state must place at least one woman on their board by the end of 2019. The bill also demands that two women must sit on public boards with five members, and three on boards of six or more by 2021. As of June 2017, more than 25% of the 445 publicly traded companies in California had no women on their boards. Opponents to the bill, including the California Chamber of Commerce, argue that the bill’s quota system does not address a lack of diversity along racial and ethnic lines, and that legislating to address gender equality would create “token” measures that would ultimately harm. Legislation pushing gender diversity is not unique – Massachusetts and Illinois have passed non-binding resolutions to address the issue. In 2003, Norway required 40% of corporate board seats be held by women, which was followed by France and other European countries. In 2015, Germany followed suit, requiring 30% of corporate board seats be held by women. Earlier this year, the New York State Common Retirement Fund announced its opposition towards the re-election of all directors on U.S. corporate boards without a single woman.