US state demands women directors

California will require publicly listed companies with headquarters in the state to have at least one woman on their boards of directors by the end of 2019, under a bill signed into law on Sunday.

The law would mandate at least two women directors by the end of 2021 if the company has five directors and three women if the company has six or more directors.

Violators face fines of at least $100,000 (R1,420.85) and up to $300,000 (R4,262.56) for multiple violations of the statute.

“Given all the special privileges that corporations have enjoyed for so long, it’s high time corporate boards include the people who constitute more than half the ‘persons’ in America,” California Governor Jerry Brown said in a statement announcing the bill’s signing.

Silicon Valley tech companies started disclosing workforce diversity figures in 2014, but progress at the top has been slow, underscoring the challenge of transforming cultures that critics say are too white and male-dominated.

Companies including Apple Inc, Google parent Alphabet Inc and Facebook Inc are headquartered in California and will each need to add at least one more woman to their boards by 2021 to meet the law’s requirement.

Companies have faced scrutiny in recent years on the composition of board directors, with investors pushing to get more women onto boards.

“There have been numerous objections to this bill and serious legal concerns have been raised. But recent events in Washington, DC – and beyond – means the message is not clear,” Brown said. –