Law calls for more women on boards

Local experts discuss implications and state of Santa Clarita Valley’s diversity in corporate leadership, on heels of measure Gov. Jerry Brown signed into law

More women in California are expected to occupy seats on corporate boards, after Gov. Jerry Brown signed a bill into law last week calling for just that.

Local business leaders sounded of this week, noting the Santa Clarita Valley is moving toward having more diverse boards.

The law requires a publicly held company to have one woman on its board by 2019. Boards with five members should have at least two, and those with six or more members must have no less than three women by 2021.

Corporations that do not comply with the law face a $100,000 fine for a first violation and a $300,000 penalty for subsequent offenses would be imposed.

Only a few of the biggest companies in the state have an all-male board of directors, after a big push to close the gender gap. Still, the scarcity of women on boards is more significant in smaller companies, according to corporate board researchers, according to a local expert who heads the lead local organization in attracting, retaining and growing business activity.

While a survey to reflect these numbers has not been conducted locally, Holly Schroeder, president at CEO of the Santa Clarita Valley Economic Development Corp., said she believes most, if not all, public corporations in the SCV have mixed representation.

“I don’t think it would be a huge change,” she said. Among the companies, she thought of including Princess Cruises, Six Flags Magic Mountain, Bank of America and Aerospace Dynamics International — all of which already have women on their respective boards.

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I think business leaders are looking out for the long term of their companies. So, I don’t think they’re going to give a seat to someone who isn’t qualified or brings value to the table.”

Jeffrey Forrest, vice president of Economic Development at College of the Canyons, said efforts are long overdue but, “What’s regrettable is that it’s a law. Why couldn’t we have moved to this point without legislation?”

Both Schroeder and Forrest said companies with diverse boards perform better because they offer a variety of perspectives in their leaderboard.

“Women bring positive and unique value to a business,” said Forrest. “They should be recognized for their talent and not just because the law says to put a woman on the board.”

Those opposing the bill, including the California Chamber of Commerce, say the law places gender higher than other aspects of diversity like race or age.

In response to oppositions, Schroeder said, “I think business leaders are looking out for the long term of their companies.

“So, I don’t think they’re going to give a seat to someone who isn’t qualified or brings value to the table.”