Racial Equality Is Coming To California Corporations
Equal opportunity is coming to California as Governor Gavin Newson signed legislation that will require California based corporations to have directors on their boards from racial or sexual minorities.
According to Time, by the end of 2021 this is the first of this magnitude in the United States which is similar to the Women on Boards (Senate Bill 826) was signed into law to advance equitable gender representation on California corporate boards.
Assemblyman Chris Holden who co-wrote the bill gave more details.
The new law represents a big step forward for racial equity. While some corporations were already leading the way to combat implicit bias, now, all of California’s corporate boards will better reflect the diversity of our state. This is a win-win as ethnically diverse boards have shown to outperform those that lack diversity.
The following individuals who would qualify would be Black, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native. It would also include gay, lesbian, bisexual, or transgender.
You want to know what else is awesome about this bill? At the end of 2022 the measurements of this board would have to have at least two directors from racial or sexual minorities and firms that don't comply would face fines of $100,000 for the first offense and $300,000 if you're a repeat offender.
I wonder if other states would follow suit and create this type of legislation for their companies.
We'll have to wait and see.