May 6, 2021 - Economy
California's "boardroom quota" impact
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A first-in-the-nation California law helped set off a boardroom boom for women executives.
Driving the news: 26% of board seats there are now held by women — twice as many as before the law passed, according to a new report.
- But new appointments in the past year were overwhelming white women (63%), while "Latinas gained the smallest amount (4.5%) compared to their state population."
What's next: Companies with five-person boards must have at least two women by the end of this year. Boards of six or more need three.
- At least 563 more seats need to be filled with women by yearend, the report finds.
- Another law requires that California public companies have at least one member from an underrepresented community by Dec. 31.
