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Inside California’s All-Male Board Ban

Amanda Swank, Editor-in-Chief

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Governor Jerry Brown from California has signed a bill requiring all publicly traded companies with headquarters in California to have at least one woman on their boards by 2019.  Companies with at least five directors will need two or three female directors, depending on the size of the board, by 2021.

This bill was passed in an effort to give more women a “seat at the table”.  Brown signed this bill into law on Sunday, October 30th 2018 along with several other bills to “protect and support women, children, and working families”.

“It’s high time corporate boards include the people who constitute more than half the ‘persons’ in America,” Brown said in a letter to the California state Senate announcing his decision

A majority of companies in the S&P 500 have at least one woman on their boards, but only about a quarter have more than two, according to a stud

California state Sen. Hannah-Beth Jackson told The Wall Street Journal last month when the legislation passed that “one-fourth of California’s publicly traded companies still do not have a single woman on their board, despite numerous independent studies that show companies with women on their board are more profitable and productive.”

“With women comprising over half the population and making over 70% of purchasing decisions, their insight is critical to discussions and decisions that affect corporate culture, actions and profitability,” she told the outlet.

Corporations that do not abide by this new law will be subjected to financial penalties by the Californian government.

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Inside California’s All-Male Board Ban