California's 165 All-Male Boards Face Deadline Under New Bill
Jordyn Holman, Kristen V Brown, Andrea Vittorio
The Bloomberg article, “California's 165 All-Male Boards Face Deadline Under New Bill," quoted Russell Reynolds Associates Consultant Nada Usina on how the new California bill requiring female board members will affect executive recruiters. The article is excerpted below.
Some 165 California-based publicly traded companies without any female directors will have to find one or more by the end of 2019 under a bill signed by Governor Jerry Brown.
The push to get more women in the boardroom doesn’t stop there. The law requires a company with five directors to have at least two female members by 2021. If a board has six or more directors, three will have to be women -- a threshold many of the state’s giants including Facebook Inc. and Tesla Inc. don’t currently meet.
Some executive search firms said more companies have reached out to them looking for qualified women who could sit on their boards. Some may want to broaden the pool of candidates they’re looking at, said Nada Usina, a member of the board and CEO Advisory Group at Russell Reynolds Associates.
“You often hear companies say we’d like a Fortune 500 CEO on our board,” she said. But that certainly limits the number of women who might qualify. “We try to help boards think about their broader strategy, what are the real issues facing the organization and how can the perspective of different individuals help them align around that?”
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