California Law Requires Public Companies to Include Women on the Board- Gender Quotas

Happy New Year! Here is news you may have missed in 2018.

California, specifically Silicon Valley region, have countless allegations on gender and ethnicity workforce gaps. Governor Jerry Brown passed the bill  SB-826 Corporation: Boards of Directors  onAugust 2018. The legislation mandates publicly traded companies with headquarters in California, to have a minimum of one woman on their board of directors by end of 2019 and a minimum of two by 2021. 


The state will also maintain an online public database to track companies who are compliant and those who are not compliant must pay a hefty fee. All eyes are on California to meet the requirements this year.

Countries in Europe have been progressive in this matter such as Norway who took a lead to require 40% women representation in boards in 2006.

I truly hope companies use the same re-vamped criteria for electing women on their board of directors across all states. The reason is that women are stereotyped into a role in the workplace that is miscalculated and misunderstood. Too often are women neglected when it comes to salary, active participation in decision making and negotiation. The truth is, we need diversity and gender equality. Women have great educational backgrounds and if a company wants to retain talented employees, then women need to be recognized and represented for who they are, not what they are. The companies reputation will increase and will have an all-around stronger image and decision-making platform with wider perspectives.




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