By midnight Sunday, 30 September, California’s Governor Jerry Brown must either sign or veto Senate Bill 826 mandating every public company to have at least one woman on its board by the end of 2019.
As an organization founded to advance the influence and impact of women in the business of healthcare, here’s the Healthcare Businesswomen’s Association’s perspective on the pending legislation:
In a perfect world, especially in the corporate boardroom, gender diversity would be a given because it is proven to positively impact performance, talent retention, innovation and profitability. However, as companies – and in this case a state government – look for ways to drive faster change to create this desired modern boardroom, alternative strategies are being investigated. The state of California is an example of how a government entity can serve as the catalyst for gender diversity. Senate Bill 826, if signed by the Governor, will require gender diverse representation on publicly traded corporate boards. Specifically the legislation would mandate that all publicly-traded California companies have one woman on the board by the end of 2019, and by the end of 2021 would require at least two women on boards with five directors and at least three women on boards with at least six directors. The HBA will closely monitor this progressive action and appreciates the significance of this legislation may have to advance gender parity. The HBA has a multitude of ways we are progressing our mission to further the advancement and impact of women in the business of healthcare and encourages an open discussion of the viability and effectiveness of new strategies.