A proposed bill, AB 979, has been introduced for consideration by Californian law makers. If approved, it will mandate that Californian companies increase diversity on the company boards by 2022. [Note: AB979 has been enacted into law since we sent out this Weekly Brief in early September.]
AB 979 outlines that in 2019, 90% of Chief Executive were white. Meanwhile, only 16% of company boards have at least one African American board member and just 13% have at least one Latino board member.
The bill proposes to increase the number of directors from underrepresented communities as follows:
- Three for companies with nine or more directors
- Two for companies with five to eight directors
- One for companies with four or fewer directors.
The bill intends to promote diversity from the following populations:
individuals who self-identify as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identify as gay, lesbian, bisexual, or transgender.
Given the relatively short timeline for compliance, it may be worth consulting with diversity recruiters to ensure a steady flow of qualified candidates in your pool.
Don’t hesitate to reach out if your company requires assistance with its corporate governance, we’re here to help.
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