Gender Quotas on California Boards
California could become the first state in the nation to enact legislation promoting gender diversity in corporate boardrooms. On May 31, 2018, the State Senate of California passed a bill that would require public companies headquartered in California to comply with certain gender quota requirements with respect to board composition. The bill, if enacted, would require any "publicly held" domestic and foreign corporation whose principal executive offices are located in California to have a minimum of one "female" on its board of directors no later than December 31, 2019. No later than December 31, 2021, the required minimum would increase to 2 female directors for corporations with 5 directors or to 3 female directors for corporations with 6 or more directors. Our Client Alert discusses the bill and the growing movement to promote gender diversity in the boardroom.