California seeks to require female board directors
A first-of its-kind bill could require major companies based in California to put more women on its corporate boards.
Bill SB-826, which cleared the California Senate and is currently sitting on the desk of Governor Jerry Brown, would require all public companies with principal executive offices in the state to have at least one woman on their boards of directors by the end of 2019. By 2021, the requirement expands to two women for five-member boards and three women for boards of six or more members. Gov. Brown has until Sept. 30 to decide whether to sign the bill.
Companies found breaking the rule would be fined $100,000 initially and $300,000 for subsequent violations.
“The glass ceiling in the C-suite is notorious, and this bill calls upon companies to open up their board rooms,” state Sen. Hannah-Beth Jackson, a Democrat who co-authored the bill, told Recode.
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Bill SB-826, which cleared the California Senate and is currently sitting on the desk of Governor Jerry Brown, would require all public companies with principal executive offices in the state to have at least one woman on their boards of directors by the end of 2019. By 2021, the requirement expands to two women for five-member boards and three women for boards of six or more members. Gov. Brown has until Sept. 30 to decide whether to sign the bill.
Companies found breaking the rule would be fined $100,000 initially and $300,000 for subsequent violations.
“The glass ceiling in the C-suite is notorious, and this bill calls upon companies to open up their board rooms,” state Sen. Hannah-Beth Jackson, a Democrat who co-authored the bill, told Recode.
Click here to read more.