On September 28, 2018 California was the first state in the nation to sign into law Senate Bill 826, which requires publicly traded companies that were incorporated in California or have principal executive offices located in California to include females on their boards of directors. The new law requires any such publicly traded company to include at least one woman on its board by the end of 2019.
For boards that have at least five directors, at least two are required to be women by the end of July 2021, and for boards that have at least six directors, at least three are required to be women by the end of July 2021. The new law permits companies to expand the size of their boards to meet the new requirements. For purposes of the new statute, females are defined as individuals who self-identify as a woman, without regard to the individual’s designated sex at birth.
Failure to comply will result in a $100,000 fine for the first offense and up to $300,000 for subsequent violations. Now companies will have have to choose either to keep their headquarters in California or move to another state. That might seem the easiest solution but uprooting families and leaving life conveniences is harder to give up than one might think. But here are the facts.
Nearly three-quarters of the 400 publicly traded companies in California have women on their boards. YES, that is correct, Three-quarters!!! Some of these companies include Disney, Facebook, Google, Chevron, and Apple. These companies are giants in their industry. They didn’t need regulation to be passed before they put women on their boards, they just sought out the most qualified applicants to make their companies stronger.
It shouldn’t matter what gender, race, religion, etc the person is just their qualifications. And if a company wants their board to be of one ethnic group, what is it government’s business to tell them not to do so. If consumers do their research they can decide to buy that company’s products. The problem is government not letting us make our own choices. But eventually, we will when we choose not to vote them back into office. But that’s just my take…..
You can read more from Dave Boddery on Think Liberty here.