Site icon The Punching Bag Post

New California Law Imposes ‘Gender Quota’ on Corporate Boards

<p>California on Sunday became the first state to impose a &ldquo&semi;gender quota&rdquo&semi; on corporate boards&period;<&sol;p>&NewLine;<p>Similar to the principle of affirmative action&comma; Senate Bill 826 requires publicly held companies to hire corporate directors based on gender&period; Companies who refuse to do so will face a &dollar;100&comma;000 for the first violation and &dollar;300&comma;000 for the second&period;&nbsp&semi;<&sol;p>&NewLine;<p>The controversial bill&comma; which applies to all companies headquartered in California &&num;8211&semi; even if they are incorporated&nbsp&semi;in another state &&num;8211&semi; will likely be defeated in court before it ever takes effect&period;&nbsp&semi;<&sol;p>&NewLine;<p>â€&DoubleDot;When asked why he would sign such a bill&comma; California Governor Jerry Brown pointed to &ldquo&semi;recent events&rdquo&semi; such as the sexual assault allegations against Supreme Court nominee Brett Kavanaugh&period; &ldquo&semi;Recent events in Washington&comma; DC &&num;8211&semi; and beyond &&num;8211&semi; make it crystal clear that many are not getting the message&period;&&num;8221&semi;<&sol;p>&NewLine;<p>If implemented&comma; Senate Bill 826 will require companies to have at least one female board member by the end of the year&period; By the end of 2021&comma; five-member boards must have at least two women and larger boards must have at least three&period; Under the new law&comma; men who &ldquo&semi;identify&rdquo&semi; as women will count towards the quota&period;&nbsp&semi;<&sol;p>&NewLine;<p>Supporters insist the bill is necessary to diversify corporate boards in California &&num;8211&semi; where in major companies just 15&period;5&percnt; of board seats are held by women&period; Among companies listed in the Russell 3000 index&comma; 25&percnt; have no female directors&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;With the governor&rsquo&semi;s support of SB 826 today&comma; yet another glass ceiling is shattered&comma; and women will finally have a seat at the table in corporate board rooms&comma;&rdquo&semi; said Sen&period; Hannah-Beth Jackson&comma; the bill&rsquo&semi;s sponsor&period;<&sol;p>&NewLine;<p>But opponents insist that hiring women based on their gender is offensive and degrading&comma; and that the bill accomplishes the opposite of what it is intended to achieve&period;&nbsp&semi;<&sol;p>&NewLine;<p>SB 826 is &&num;8220&semi;unconstitutional because it favors one element of a diverse workforce over all others&comma;&rdquo&semi;&nbsp&semi;argues California Chamber of Commerce spokesperson Chris Micheli&period; &ldquo&semi;Gender is an important aspect of board diversity&comma; but the state should not elevate this element over all aspects of diversity&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p><strong>Author&&num;8217&semi;s Note&colon;<&sol;strong>&nbsp&semi;<&sol;p>&NewLine;<p>The women currently serving on corporate boards are there because they earned it&period; Think how they will feel meeting another female director &&num;8211&semi; wondering if she is actually qualified or if she was just hired to fit a quota&period; The same thing goes for male coworkers&comma; who will automatically look down on her&period;&nbsp&semi;<&sol;p>&NewLine;<p>The quota also threatens to tarnish the achievements of women who already hold respected positions in California corporations&period;&nbsp&semi;<&sol;p>&NewLine;<p><strong>Editor&&num;8217&semi;s Note&colon;<&sol;strong> In the name of &&num;8220&semi;equality&comma;&&num;8221&semi; California has just shown the soft bigotry of low expectations&period;&nbsp&semi;<&sol;p>&NewLine;

Exit mobile version