California becomes the first state to require women on boards of directors: NPR

California will be the first state to oblige publicly traded companies to have at least one woman on their board of directors.

The law, signed Sunday by Governor Jerry Brown, requires state-owned companies whose main executive offices are located in California to comply with the law by the end of 2019. The minimum is two women directors if the company has five directors, or three women. there are seven directors by the end of 2021.

The bill was sponsored by the State Sense. Hannah-Beth Jackson and Toni Atkins. "We will not be asking for more," said Jackson in August in a speech on the bill, the Los Angeles Times reported. "We are sick of being nice, we are tired of being polite, we are going to demand that because it will benefit the economy, which will benefit each of these companies."

"It is time for us to break up this men's cave and put women in conference rooms," she said. According to KQED, a quarter of California's 445 publicly traded companies have no women on their boards.

Brown acknowledged that there were "many objections" and "serious legal concerns" to the bill.

The California Chamber of Commerce and 29 other business groups opposed it, sending a letter to the Senate stating that the measure is unconstitutional, that it only takes into account sex and not another diversity, and that it seeks to manage the directors of companies that: are incorporated in another state.

"Such confusion and ambiguity will only lead to costly fines, as provided for in the bill and possible litigation," the companies complained. Companies that do not comply with the law will be fined $ 100,000; the following offenses will result in a fine of $ 300,000.

Jessica Levinson, a professor at Loyola Law School in Los Angeles, wrote that "the bill specifically creates a gender-based classification and thus raises issues of equal protection in the US Constitution and the Constitution of the United States. California: When the government legislates In terms of gender equality, the courts generally subject this legislation to scrutiny, which essentially means that the government must prove that it has very good reasons to do what it does. and that there is no better way to achieve this goal. "

Only 5% of Standard & Poor's 500 companies (which includes only publicly traded companies) have female CEOs. according to The New York Times, women who have held the position of general manager are much less likely than men to become CEOs of another company and less likely to sit on the board of directors of a company.

In 2008, Norway introduced quotas for women to make up 40% of the directors of publicly traded companies, and many Western European countries quickly followed suit. L & # 39; economist reported in February. "In all countries, business leaders protested when the idea was launched," the magazine noted. But ten years later, "the worst fears have not been realized."

One of the concerns – the fact that a small group of women would end up sitting on many boards – is proving to be a problem for men as well. the Economist also found that some of the benefits announced for the increase in the number of women in the boards – such as reducing the pay gap between men and women or the effect on the decision-making process of the company – did not necessarily materialize.

The bill was one of Brown 's last approval or veto opportunities before he left office due to term limits, the Associated Press reported. The approval was also made in the context of the controversial Supreme Court confirmation process of Brett Kavanaugh, who was charged with sexual assault more than 30 years ago.

In his statement on the passing of the bill, the governor of California explicitly praised the US Senate Committee on the Judiciary and wrote, "I do not downplay the potential flaws that could actually be fatal. [the law’s] ultimate implementation. Nevertheless, recent events in Washington, DC and beyond clearly show that many do not understand the message. "

He noted that by 1886 societies had been considered as people since the 14th amendment.

"Given all the special privileges that companies have enjoyed for so long, it's high time that corporate boards include people who make up more than half of America's" people, "Brown wrote. .

Jackson, co-sponsor of the bill, said USA today that the law is "a giant leap forward, not only for women, but also for our businesses and our economy".

"I hope that companies, instead of fighting against it, will recognize its value and take the initiative to gather and make more diverse their boardrooms," she said.