As companies plan and strategize about next steps regarding the “S” of ESG, i.e., Social initiatives, we are often asked about best practices in promoting Diversity, Equity, and Inclusion (DEI) goals in the workplace. Companies increasingly are seeking to tie compensation to DEI goals. Doing so demonstrates the company’s commitment to DEI, and rewards positive
Diversity
California Courts Have Found Two Statutes Requiring Diversity in the Makeup of Public Company Boards of Directors Unconstitutional
By Harold R. Jones on
Posted in Diversity
In April, a Los Angeles Superior Court held that Assembly Bill (AB) 979 which required publicly-held corporations headquartered in California to diversify by adding “underrepresented communities” to their board of directors, was unconstitutional. On May 13, 2022, a second Los Angeles Superior Court found Senate Bill (SB) 826, which required gender diversity on…
California Superior Court Finds AB 979 is Unconstitutional
By Harold R. Jones on
Posted in Diversity
On September 30, 2020, Governor Newsom signed Assembly Bill (AB) 979, which required publicly held corporations headquartered in California to diversify their boards of directors with directors from “underrepresented communities” by December 31, 2021. AB 979 followed similar legislation in Senate Bill (SB) 826, which required gender diversity on boards of directors. Read
Challenges to California’s Board Diversity Statutes
By Harold R. Jones on
Posted in Diversity
Building on board gender diversity requirements, California passed Assembly Bill (AB) 979 in 2020. This statute requires publicly held corporations headquartered in California to diversify their boards of directors with directors from “underrepresented communities,” specifically those individuals who self-identify as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native,…
Diversity, Inclusion & Equity Training for Boards – Not Just a Compliance Exercise
By Emily S. Borna on
Posted in Diversity
“The most powerful leadership tool you have is your own personal example.” John Wooden
Boards play a pivotal role in establishing an organization that champions, highlights, and capitalizes on diversity, inclusion and equity. Boards must be mindful of how they present themselves. The growing climate of intolerance that has come to light over…
California Requires Board Diversity and Additional Company Disclosures
By Harold R. Jones on
Posted in Diversity
On September 30, 2020, California Governor Gavin Newsom signed a bill into law requiring publicly held corporations to further diversify their boards of directors. He also signed a bill requiring that corporations and limited liability companies make additional disclosures.
Assembly Bill 979 (AB 979) adds Section 301.4 to the California Corporations Code. This Section requires…
New York Enacts Legislation Related to Board Diversity
By Teri Wilford Wood & Anna K. Broccolo on
Posted in Corporate Governance, Diversity
New York recently enacted the “Women on Corporate Boards Study” law (S. 4278), joining a growing number of states requiring organizations to report their board composition. The new law applies to domestic and foreign corporations “authorized to do business” in the state. Given the expanse of companies doing business in New York, this…
Seeking Unity, Not Uniformity*: Diversity and the Corporate Board of Directors
By Teri Wilford Wood on
Posted in Diversity
New board of directors appointments such as Indra Nooyi joining Amazon, Nikki Haley nominated by Boeing, and Michelle J. Howard as IBM’s latest director illustrate the accelerating trend of gender and minority diversity on corporate boards – an apt topic for Women’s History Month. And there are plentiful reasons for promoting board diversity.
Sometimes board…