Please ensure Javascript is enabled for purposes of website accessibility
California Acts To Increase Diversity on Corporate Boards
gvw_ap_news
By Associated Press
Published 4 years ago on
August 31, 2020

Share

SACRAMENTO — California moved closer Saturday to a first-in-the-nation law requiring corporate boards to include racial or sexual minorities, expanding on a new law that sets a similar requirement for including women directors.

Supporters evoked both the coronavirus pandemic that is disproportionately affecting minorities and weeks of unrest and calls for inclusion that followed the slaying of George Floyd in May in the custody of Minneapolis police.

Supporters evoked both the coronavirus pandemic that is disproportionately affecting minorities and weeks of unrest and calls for inclusion that followed the slaying of George Floyd in May in the custody of Minneapolis police.

It advanced as state senators took up about two-dozen measures in a rare weekend session while they hurried to make up for weeks of consideration lost because of the pandemic. Most Republican senators again took the previously unprecedented step of voting remotely from their homes or hotel rooms after one of their members tested positive earlier in the week and potentially exposed others during a caucus lunch.

Both the Senate and Assembly are set to meet Sunday as they race to adjourn for the year on Monday.

The diversity bill approved by the Senate would require California-based public corporations to have one board director from an underrepresented community by the end of 2021. It passed on a 26-8 roll call and now returns to the Assembly for a final vote.

Those who qualify would self-identify as Black, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native, or as gay, lesbian, bisexual or transgender.

The measure would require a minimum of two such directors by the end of 2022 on boards with four to nine directors, and at least three such directors on boards with nine or more directors. Firms that don’t comply would face fines of $100,00 for first violations and $300,000 for repeated violations.

“Corporations do not reflect the vast cultural wealth in this state.,” said Democratic Sen. Benjamin Hueso of San Diego.

The Nation’s First Such Law Requires Boards To Have Two or More Women Directors by 2021

For instance, he said 87% of the state’s 662 public companies do not have any Latino directors, yet Latinos make up 39% of the state’s population.

“They are severely underrepresented in the boardroom,” Hueso said. “California is better than this. We are the most diverse state in the nation, and our corporations need to emulate our diversity.”

Democratic Sen. Scott Wiener of San Francisco, chairman of the Legislature’s LGBTQ Caucus, said current boards are often “sort of an old boys network.”

“I think positions should be earned. In private business, boards should be elected and people should be put on boards that best represent the business, and that can be anybody’s skin color.” — Senate Republican Leader Shannon Grove of Bakersfield

“I think positions should be earned,” countered Senate Republican Leader Shannon Grove of Bakersfield. “In private business, boards should be elected and people should be put on boards that best represent the business, and that can be anybody’s skin color.”

The only official opponent in a legislative analysis was former California commissioner of corporations Keith Bishop. He objected that that bill, coupled with the existing diversity law, would make it more desirable for corporations to pick women who also are members of the underrepresented communities to simultaneously meet both sets of quotas, to the detriment of men or women who do not meet the qualifications in the new bill.

Hueso said adding diversity would improve corporate performance, a similar argument used by supporters of a 2018 law that gave California’s publicly held corporations until this year to add at least one woman to their boards.

The nation’s first such law requires boards to have two or more women directors by 2021 for boards of five; and three women by 2021 for boards of six or more.

“I get quite offended when somebody thinks that because there’s a recruitment effort, a proactive effort, to integrate into every aspect of our society, that somehow that means we’re lowering the standard,” Democratic Sen. Maria Elena Durazo of Los Angeles said in response to Grove’s comments.

RELATED TOPICS:

DON'T MISS

California Legislation Wants to Uncover the ‘Hidden Homicides’ of Domestic Violence

DON'T MISS

The Summer After Barbenheimer and the Strikes, Hollywood Charts a New Course

DON'T MISS

Fresno Oops? Garbage Hike Protest Vote Delayed by Error

DON'T MISS

Trump’s Potential VP Pick Boasts About Executing Puppy

DON'T MISS

Trita Parsi: Blind Support for Israel Erodes Western Democracies

DON'T MISS

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

DON'T MISS

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

DON'T MISS

Nuggets Close to Sweeping Lakers After Game 3 Win

DON'T MISS

Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’

DON'T MISS

‘IDEA’ Is the Latest Career-Oriented Campus on Fresno Unified’s Drawing Board

UP NEXT

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

UP NEXT

LA Judge Deals a Blow to Law Allowing Duplexes in Single-Family Tracts

UP NEXT

US Growth Slows Sharply Amid High Interest Rates and Inflation

UP NEXT

Hamas Official: We’ll Put Down Arms if an Independent Palestine Is Created

UP NEXT

Ex-State Department Official: Israeli Military Gets Preferential Treatment on Abuses

UP NEXT

Dozens Arrested at USC After Students in Texas Detained as Gaza War Protests Persist

UP NEXT

New California Rule Aims to Limit Health Care Cost Increases to 3% Annually

UP NEXT

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

UP NEXT

Ancestry Website to Catalogue Names of Japanese Americans Incarcerated During World War II

UP NEXT

Sacramento Bee Accused of Mangling the Facts About Fish Caught in Pumps

Trump’s Potential VP Pick Boasts About Executing Puppy

24 hours ago

Trita Parsi: Blind Support for Israel Erodes Western Democracies

24 hours ago

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

1 day ago

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

1 day ago

Nuggets Close to Sweeping Lakers After Game 3 Win

1 day ago

Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’

1 day ago

‘IDEA’ Is the Latest Career-Oriented Campus on Fresno Unified’s Drawing Board

Local Education /

1 day ago

Yoshinobu Yamamoto’s 6 Shutout Innings Help Dodgers Finish Sweep, Defeat Nats 2-1

1 day ago

The 49ers Add Florida Receiver Ricky Pearsall With the 30th Draft Pick

1 day ago

Political Stunt, Egg on His Face, Personal Vendetta. Who’s Fresno DA Talking About?

1 day ago

California Legislation Wants to Uncover the ‘Hidden Homicides’ of Domestic Violence

A state senator says there’s a “hidden homicide” epidemic of killers making domestic violence murders look like suicides or accidents. Her b...

11 hours ago

11 hours ago

California Legislation Wants to Uncover the ‘Hidden Homicides’ of Domestic Violence

11 hours ago

The Summer After Barbenheimer and the Strikes, Hollywood Charts a New Course

23 hours ago

Fresno Oops? Garbage Hike Protest Vote Delayed by Error

24 hours ago

Trump’s Potential VP Pick Boasts About Executing Puppy

24 hours ago

Trita Parsi: Blind Support for Israel Erodes Western Democracies

1 day ago

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

1 day ago

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

1 day ago

Nuggets Close to Sweeping Lakers After Game 3 Win

MENU

CONNECT WITH US

Search

Send this to a friend