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Businesses Government United States

California May Become First State To Require Companies To Have Women On Their Boards (techcrunch.com) 782

Two female state senators from California are spearheading a bill to require companies to have women on their boards. "SB 826, which won Senate approval with only Democratic votes and has until the end of August to clear the Assembly, would require publicly held companies headquartered in California to have at least one woman on their boards of directors by end of next year," reports TechCrunch. "By 2021, companies with boards of five directors must have at least two women, and companies with six-member boards must have at least three women. Firms failing to comply would face a fine." From the report: "Gender diversity brings a variety of perspectives to the table that can help foster new and innovative ideas," said Democratic Sen. Hannah-Beth Jackson of Santa Barbara, who is sponsoring the bill with Senate President Pro Tem Toni Atkins of San Diego. "It's not only the right thing to do, it's good for a company's bottom line."

Yet critics of the bill say it violates the federal and state constitutions. Business associations say the rule would require companies to discriminate against men wanting to serve on boards, as well as conflict with corporate law that says the internal affairs of a corporation should be governed by the state law in which it is incorporated. This bill would apply to companies headquartered in California. [A] legislative analysis of the bill cautioned that it could get challenged on equal protection grounds, and that it would be difficult to defend, requiring the state to prove a compelling government interest in such a quota system for a private corporation.

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California May Become First State To Require Companies To Have Women On Their Boards

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  • by arbiter1 ( 1204146 ) on Monday August 13, 2018 @09:33PM (#57120044)
    Yea Forcing Diversity in to things at the expense of people that could be more qualified has never been a bad idea.
    • by Frank Burly ( 4247955 ) on Monday August 13, 2018 @10:38PM (#57120278)

      My exposure to board-level people is that the positions are sinecures meant to demonstrate the bonafides of the company and provide inside access to the resources that board member is associated: eg. inventment banker, or someone from a VC firm, or the President's son. In other words the notion of "most qualified" is laughable.

      California is attempting to address the chicken-and-egg problem of increasing the number of women in a position to be influential enough to ask to join the board in the first place.

      This bill is a pretty blunt-force approach, but corporations are creatures of the state and this isn't an instance where a quota would have an impact on anything that could pretend to be a meritocracy.

      • Re: (Score:3, Interesting)

        and provide inside access to the resources that board member is associated: eg. inventment banker

        In other words the notion of "most qualified" is laughable.

        Didn't you just contradict yourself? That definitely seems like a qualification to me right there.

        • and provide inside access to the resources that board member is associated: eg. inventment banker

          In other words the notion of "most qualified" is laughable.

          Didn't you just contradict yourself? That definitely seems like a qualification to me right there.

          You can't just invent your own qualifications to save up for when you need them.

        • by Reverend Green ( 4973045 ) on Tuesday August 14, 2018 @06:02AM (#57121506)

          He's pointing out that "qualifed" just means a member in good standing of the financial nobility. Skill, intelligence, etc usually associated with "merit" have nothing to do with it.

          • by Ol Olsoc ( 1175323 ) on Tuesday August 14, 2018 @07:41AM (#57121932)

            He's pointing out that "qualifed" just means a member in good standing of the financial nobility. Skill, intelligence, etc usually associated with "merit" have nothing to do with it.

            In this instance, the qualification is distinctly called out. It is based upon the genitals of the qualified person.

            We'll overlook that those who are born as a male are specifically denied x number of positions based upon their sex.

            Regardless, this is an incredibly sexist and bigoted bill.

            I guess I just don't understand how sexism is eliminated by sexism.

            It isn't even affirmative action.

        • by luis_a_espinal ( 1810296 ) on Tuesday August 14, 2018 @09:44AM (#57122770)

          and provide inside access to the resources that board member is associated: eg. inventment banker

          In other words the notion of "most qualified" is laughable.

          Didn't you just contradict yourself? That definitely seems like a qualification to me right there.

          You left out the other (and far more relevant part):

          or someone from a VC firm, or the President's son.

          With all things equal, qualifications are the great equalizer. But not all things are equal. Never underestimate the power of social capital, and we don't have that many true meritocracies (we have self-perpetuating systems - read Chris Hayes' "Twilight of the Elites".)

          I don't necessarily agree with the bill, but I see where it comes from. It won't necessarily alter boards' to deleterious effects, and it *might* extend the benefit of social capital to other capable people (women) that typically lack access to it.

          It is neither a silver bullet panacea, nor stake in a board's heart. Time will tell how well it moves the needle (positively or negatively.)

      • by kenh ( 9056 ) on Tuesday August 14, 2018 @01:29AM (#57120820) Homepage Journal

        When will California adopt similar diversity quotas for State Senators?

        Also, I'm curious how this legislation defines "women"?

        • by K. S. Kyosuke ( 729550 ) on Tuesday August 14, 2018 @01:37AM (#57120840)
          If you say you're a woman, you're a woman. Duh.
        • by CrimsonAvenger ( 580665 ) on Tuesday August 14, 2018 @07:28AM (#57121864)

          When will California adopt similar diversity quotas for State Senators?

          And nurses? Firefighters? Garbage collectors? Strippers? Elementary school teachers?

          And...***insert long list of jobs where gender (sex?) discrimination is obvious because one sex or the other dominates***?

          • Re: (Score:3, Insightful)

            When will California adopt similar diversity quotas for State Senators?

            And nurses? Firefighters? Garbage collectors? Strippers? Elementary school teachers?

            And...***insert long list of jobs where gender (sex?) discrimination is obvious because one sex or the other dominates***?

            Those careers you mention aren't susceptible to social capital the way boards are. And some of them have that gender tilt because of gender or cultural preferences, not because of glass ceiling barriers or lack of social capital.

            I don't necessarily agree with this bill, but your counter-argument is reaching into the realm of the far-fetched.

      • by msauve ( 701917 )
        Yeah, a law forcing discrimination and equality of outcome is going to pass Constitutional muster. What a blatantly sexist law.
    • by Anonymous Coward on Monday August 13, 2018 @11:16PM (#57120472)

      Since there is absolutely no history of liberals coming up with ideas that they regret when conservatives do them twice as big (*cough Biden rule *cough senate justice nuclear option *cough) I wonder how long it will be until there are 'intrusive' rules requiring a certain number of conservatives on company boards and college professorships. You know, for the sake of diversity.

  • by Anonymous Coward on Monday August 13, 2018 @09:38PM (#57120062)

    What about companies with all female board of directors? Will they be forced to have males on board or does equality only matter when you have a vagina?

  • What about? (Score:5, Funny)

    by Anonymous Coward on Monday August 13, 2018 @09:39PM (#57120066)

    I'm confused. I thought California had officially settled on 1,000's of genders. Is this not discriminatory to Neutois demi-boys? Or woodsprite pansexuals? I mean, I understand there is a need to keep out Apache Attack Helicopters but we need balance here!

  • by El Cubano ( 631386 ) on Monday August 13, 2018 @09:45PM (#57120084)
    Wait a minute. I'm Hispanic. Where is the law that requires companies to have at least one Hispanic on their board? Why does the California legislature hate me?
    • by SirAstral ( 1349985 ) on Monday August 13, 2018 @10:15PM (#57120176)

      Because this is an easy low hanging fruit law. It is just simple numbers. There are only 2 genders, but several different races and nationalities, ethnicities to consider, that is until we decide to cross into the LBGTQ etc territory.

      This allows those in support of these laws to claim that they are for equality without having to actually go the distance, hence the cheap low hanging fruit comment. The idea is to introduce "feel good" laws that serve no purpose other than to advance an agenda.

      The problem with things like this is others get left out, in your case your Hispanic origin and still leaves you directly discriminated against. As this progresses at which point do we call it done? There are potentially an infinite number of minority configurations possible. Gender, Race, Religion, Politic, Fraternity, Age, Ugly, Pretty? This is why "individuality" needs to be the ideal. There is no greater minority than the individual, which means any other form of classification only results in a caste/class system where one group gets special treatment at the expense of other groups. It creates division... and right now much division has been created under the guise of inclusion.

    • by antdude ( 79039 )

      What about blacks, disabled, etc.? :(

  • by Anonymous Coward on Monday August 13, 2018 @09:46PM (#57120086)

    It's about the intersectional thing now. A woman? Why not a black muslim woman? Or better yet someone who is transgender or gender fluid? That law is so behind the times. You have to be a member of a grievance group to get attention.

    Sadly - this identity politics thing is fueling the rise of white nationalism. Which is another identity ground centered around grievance as well. Strangely - many far left and far right groups are in solidarity on socialism. Weird.

    • by Brett Buck ( 811747 ) on Monday August 13, 2018 @10:46PM (#57120318)

      More or less. I agree with you - but "white nationalism"? A grand total of 20 people showed up at the so-called "Unite the Right" rally this weekend, billed as a major "white nationalist" gathering. This is more-or-less what always happens at neo-Nazi get-togethers, a few morons giving Sig Heils to each other, and 2000 protesters.

          "White nationalists" are neither "right", nor "nationalists", and they are nothing and mean nothing to national politics, aside from being dim-witted pawns in a game by the hard-left to stereotype conservatives.

      There is nothing that is remotely conservative or "right" about these nitwits. Being conservative in the USA means believe in individual liberty, natural law, and limited government. Socialism/"National Socialism"/Facism/Communism or any other form of totalitarianism couldn't be any less compatible with that idea, and is fundamentally incompatible with the constitution.

      • Re: (Score:3, Interesting)

        by AmiMoJo ( 196126 )

        The fact that 20 people turned up to Unite the Right this year is because they badly misjudged the reaction of the nation last year. They convinced themselves that many ordinary people agreed with them but just needed permission to come out and say it by seeing the nationalists march openly and proudly.

        What actually happened is that they lost their jobs, someone got murdered and the expected widespread support never materialised. The bubble they had been living in burst.

        They are called nationalists because

  • by RyanFenton ( 230700 ) on Monday August 13, 2018 @09:48PM (#57120090)

    There's a lot of intentionally provocative/trollish bills california congress - which actually have weak effects, and are mostly pushing for industries to self-regulate, and are NOT actually expected to pass, but reach compromise.

    You know, all the stuff that some folks compliment Trump on pushing as genius strategic moves.

    More importantly, which a lot of these summaries (and this article) seem to gloss over - this is only for the California senate - not the US senate.

    None of these things are positions asked for by Democrats in general, or even these Democrats, except as a starting point of negotiation.

    Ryan Fenton

    • by El Cubano ( 631386 ) on Monday August 13, 2018 @10:09PM (#57120154)

      There's a lot of intentionally provocative/trollish bills california congress - which actually have weak effects, and are mostly pushing for industries to self-regulate, and are NOT actually expected to pass, but reach compromise.

      If it isn't expected to pass, then why was the largest committee tally of "noes" only 2 votes and why did it pass the floor vote with 66% "yeas" of those who voted and 56% "yeas" if include the non-votes? Don't believe me? Then see for yourself [ca.gov].

      That doesn't seem like something that has no chance of passing. It is has a chance at passing and as a result a chance of being profoundly damaging.

      • by djinn6 ( 1868030 ) on Monday August 13, 2018 @10:40PM (#57120294)

        It is has a chance at passing and as a result a chance of being profoundly damaging.

        It's not going to be profoundly damaging. At worst companies will "relocate" their headquarters to Delaware. At best it'll be immediately struck down for gender discrimination at the federal level.

        • by AmiMoJo ( 196126 )

          Would it be "profoundly damaging" if it had the intended effect? How would having at least one woman on every board cause this profound damage?

          • If you have to dedicate a board seat to someone who's not necessarily the most competent and/or driven person to fill that it's obviously going to be to detriment of the company. Let's not even go into what it's going to be for the person who has to fill the seat knowing they got hired because of their gender and not their qualifications and the resentment this is bound to create towards this person.

            Would you want to occupy a position you knew you got not because of your abilities, experience or dedicati
  • by argStyopa ( 232550 ) on Monday August 13, 2018 @09:50PM (#57120094) Journal

    I thought we were working to make everyone treated the same?

    Now, women need preference quotas to fill chairs.

    Got it. I'm SURE that will give them the respect they precisely deserve.

  • So anyone looking for someone talented for the position to fit your specific company now has half of the amount of talent to choose from and perhaps much less if their field is a male dominated field. How is this even being considered?
  • Business associations say the rule would ... conflict with corporate law that says the internal affairs of a corporation should be governed by the state law in which it is incorporated. This bill would apply to companies headquartered in California.

    I'm all for states regulating companies that do business within them. I mean, I get that all of Silicon Valley decided to incorporate in Delaware, but they live in California. Let California regulate them.

    • by blindseer ( 891256 ) <blindseer@noSPAm.earthlink.net> on Monday August 13, 2018 @10:50PM (#57120350)

      I'm all for states regulating companies that do business within them. I mean, I get that all of Silicon Valley decided to incorporate in Delaware, but they live in California. Let California regulate them.

      You do realize that they can chose to not live in California, no? California already drove out a handful of aerospace companies because of their stupid laws. They wanted to regulate "rocket fuel" as a toxic substance. I don't know if they realized this or not but "rocket fuel" is no different than jet fuel, fuel oil, gasoline, or any other hydrocarbon fuel. There are already rules on this on the state and federal level. But it's "rocket fuel" now and so the state wanted all kinds of paperwork to burn "rocket fuel" in their state. Well, that just meant they lost a lot of future business in the space launch industry to Texas, Colorado, Florida, Arizona, etc.

      I don't much care what the restriction is on a business, so long as a company can free themselves from a state restriction by moving out of the state then California will lose businesses. I believe that if California did not have such great weather that they'd have gone bankrupt a long time ago by now. There's only so much that beaches and sunshine can buy.

      Maybe someone could argue that this rule serves some "greater good" but it won't. Here's why, can you define a "woman" for me? Seems simple enough, right? Well, there was a story going around the internet a week or a month ago on how a Canadian man got himself a discount on his car insurance by declaring himself a woman. He didn't take any hormones, he didn't undergo any surgery, he didn't change his name or his "pronouns". He simply wanted the lower insurance rates that women get and so found a physician willing to sign a form and got his sex changed on paper. So, legally speaking, he's a "woman".

      I don't know if it's the same people that are trying to hold these two conflicting ideas at once, or two different sides of this debate trying to make conflicting points, but whatever this is it will end up eating itself in the nonsense. If gender is just a social construct then there is no man and there is no woman. Men cannot oppress women if this is a social construct because then women can gain the same "male privileges" by declaring themselves men. If gender is not just a social construct then they will have to admit that men and women are different, not that men are better, only different.

      If men are different than women then there are things that men will excel in that women will not. Also, there will be things that women excel at that men will not. If men and women are different then this will be exposed in things like men being more prominent in being on corporate boards.

      If this nonsense continues then we'll see board members leave as "Bruce" one day and only return the next in a dress and lipstick as "Cait". And who will dare to say this person is not a woman?

      • You do realize that they can chose to not live in California, no?

        Sure I do. And if they decide to move, maybe California will change it's laws to keep them. I'm not a particular fan of this law, but I am a fan of states being able to regulate the companies who do business within them. Otherwise, people who want to live in an area where, I dunno, businesses have to hire 10% homeless people or businesses have to allow open carry or whatever cannot exist. Some laws (and I think both of my prior examples) ar

      • You do realize that they can chose to not live in California, no? California already drove out a handful of aerospace companies because of their stupid laws. They wanted to regulate "rocket fuel" as a toxic substance. I don't know if they realized this or not but "rocket fuel" is no different than jet fuel, fuel oil, gasoline, or any other hydrocarbon fuel.

        There's loads of different kinds of rocket fuel. Kerosene is used for the first stage. Hydrazine and DNTO are both very nasty and popular in satellite ro

  • Constitution? (Score:4, Insightful)

    by Brett Buck ( 811747 ) on Monday August 13, 2018 @09:52PM (#57120108)

    Oh, that old thing? What's all that talk about "equal protection clause"?

    • Reference article for Equilar Gender Diversity Index

      women on Russell 3000 boards increased in Q1 2018 from 16.5% to 16.9%

      Considering that women are, what 50% of the population, I find it hard to believe that woman are not being discriminated in one way or another

      Russell 3000 companies with all-male boards dipped below 20% for the first time(19.5%)

      Notice we are not talking about corporate boards made entirely of women here, 19.5% male only boards are nothing to be proud about.

      Some observers have also suggested the focus on gender diversity has marginalized racial and ethnic groups who are also far underrepresented on boards. At the recent Equilar Board Leadership Forum, co-hosted with Nasdaq, one panelist commented that African American and Hispanic professionals often feel like they are being left out of the conversation.

      It is not only women whom are left out of the board room, but race should also be a part of the di

      • Considering that women are, what 50% of the population, I find it hard to believe that woman are not being discriminated in one way or another

        Really? Women are being discriminated against, that's the only possible explanation?

        Dr. Jordan Peterson spoke about this in a number of his lectures and interviews on YouTube. His explanation for this is that women are more sane and therefore less likely to take on the insane job of being a board member. I'm not quoting him, as he puts it more "diplomatically" for lack of a better word, I just paraphrased what I heard.

        To be a board member means being hyper-competitive, exhibiting anti-social behavior, ha

  • by bobstreo ( 1320787 ) on Monday August 13, 2018 @09:58PM (#57120124)

    With this type of reasoning, there will soon be NFL teams with women in wheelchairs as linemen.

    Typically bard members are all of similar socioeconomic backgrounds.

    They're all either very wealthy or politically powerful.

    Why not force companies to have a certain number of members from different financial, ethnic or religious backgrounds?

    Just making them choose more women for their board is offensive to pretty much everyone.

    The best place to start enacting policies like this would of course be California government hires and candidates for election.

    • Just making them choose more women for their board is offensive to pretty much everyone.

      Women should take the most offense to this. If women are to claim that they are as able to do anything as any man then they will have to be able to prove it without the government clearing a path for them. This isn't a "victory" for equality, this is making some people "more equal than others".

      • by AmiMoJo ( 196126 )

        Bizarre logic.

        Two people are running a 100m race. One notices that there are hurdles in their lane. They suggest that to make it a fair competition the hurdle be removed, and you tell them that they need to prove themselves the "equal" of someone running down a clear lane. Furthermore, the mere suggestion of levelling the playing field should offend them.

  • Consistency (Score:5, Insightful)

    by myid ( 3783581 ) on Monday August 13, 2018 @09:59PM (#57120128)

    James Damore got in trouble, because his memo said that women don't think the same way that men do.

    But Sen. Hannah-Beth Jackson says, "Gender diversity brings a variety of perspectives to the table that can help foster new and innovative ideas."

    So do women think differently from men, only when this difference should make you want to hire women?

    • Re: (Score:2, Troll)

      by pots ( 5047349 )
      James Damore got in trouble because in between a complaint about Google corporate culture and a set of proposals to address that problem, he decided to insert his own little screed about all of the ways in which he thought women and men were different. It was poorly supported, inflammatory, and worst of all unnecessary. That middle section contributed nothing to his proposal.

      However, if all that he had said in that middle section was, "Men and women think differently." he would not have gotten fired, his
    • Re: (Score:2, Interesting)

      by ljw1004 ( 764174 )

      James Damore got in trouble, because his memo said that women don't think the same way that men do.

      That's only part of what he did, and not why he got fired. Damore wrote a memo with lots of logical gaps. The reader naturally had to fill in those gaps. Most readers didn't realize they were gaps and filled them in according to their own fears and preconceptions. That's why a lot of people filled in with their presumption that he was a nasty person making sexist arguments, and other people filled in with their presumption that he was a reasonable person making valid points. The different audiences were res

  • If this measure passes, companies will turn their boards into puppet governance, and move their real governance down the line. There will be strong representation of women, but these new boards will find themselves having little to no actual strategic engagement.
  • If it is self-identified women, then we are already compliant. Just have Bob fill the form.
  • by piojo ( 995934 ) on Monday August 13, 2018 @10:31PM (#57120246)

    I'd like men to live as long as women, and to have a suicide rate that's equally low. Can we get more funding for research (and subsidized medical care) to level the playing field? And how about criminal justice interventions which stop our prisons from being full of men?

    Equality is great, unless it's applied unevenly. And frankly, I will worry about boards of directors after I worry about healthcare and unequal application of justice.

    • by djinn6 ( 1868030 )

      Equality is great, unless it's applied unevenly.

      Some people are more equal than others.

  • by dbrueck ( 1872018 ) on Monday August 13, 2018 @10:47PM (#57120330)

    The bill contains this little nugget in the footnotes:

    " “Female” means an individual who self-identifies her gender as a woman, without regard to the individual’s designated sex at birth."

    I was already hoping the bill would pass because of the silliness of it, but with the above it's gonna be comedy gold.

    • The bill contains this little nugget in the footnotes:

      " “Female” means an individual who self-identifies her gender as a woman, without regard to the individual’s designated sex at birth."

      I was already hoping the bill would pass because of the silliness of it, but with the above it's gonna be comedy gold.

      I look forward to the coder bro CEOs having to come to work in dresses as "Mary".

      I mean, those who don't do that already ...

  • Its like they say! (Score:5, Insightful)

    by Notabadguy ( 961343 ) on Monday August 13, 2018 @10:54PM (#57120378)

    Like the old adage goes - Democrat Ideas: So great that they have to be enforced.

  • Oh for fucks sake (Score:3, Interesting)

    by rsilvergun ( 571051 ) on Monday August 13, 2018 @11:06PM (#57120430)
    this is a terrible idea. It'll energize the right wing in the State giving them plenty of legitimate talking points/grievances. It's obviously unconstitutional discrimination so it'll get shot down in court wasting a ton of money too.

    On the plus side stuff like this is very popular with a certain kind of Democrat. To whit: right wing "corporate" Democrats who need something to throw to the base besides economic issues. This let's them run in left wing districts while opposing stuff like single payer healthcare, college for all, ending the 8 wars we're in, The New New Deal etc, etc. It's the Democrat equivalent to Dog Whistling and just as despicable.
  • by sabbede ( 2678435 ) on Tuesday August 14, 2018 @07:23AM (#57121842)
    Board members are voted into place by the stockholders. Is California looking to undo that? Do the Senators who passed this realize how many rights would be violated or invalidated by it? Who told them they had anything like the authority to do so?

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