WOMEN ON BOARDS

Women hold just 22% of Russell 3000 board seats

WHAT YOU NEED TO KNOW

In 2018, State Senator Hannah Beth Jackson passed and Governor Jerry Brown enacted SB826, a first-in-the-nation law requiring publicly-traded companies with California headquarters to have at least one woman on their board of directors. By January 1, 2022, the law requires that boards of six or more directors have at least three women, and boards of five have at least two. Estimates are that about 1,000 women need to be added to California company boards to be in compliance with the new law.

 

The law was based on numerous studies showing that companies with female directors are more profitable. Other studies demonstrate additional benefits to having more than one woman on a corporate board, such as improved crisis management, sustainability practices, workforce engagement, and greater resilience during the 2008 recession. 

 

Including women on corporate boards can also close the persistent gender and wealth gaps. Board directors are generally paid over $100,000 per year of service, and their leadership influences pay and hiring practices throughout corporations. 

 

In order to understand the effects of this pioneering law in California, we need to keep accurate and up-to-date data on board appointments. Robust information on compliance under SB826 will give us insights into variations by region, industry sector, and company size. Through data collection and tracking, we can ensure that the law’s impacts are accurately measured, widely understood, and celebrated. 

The possible opportunities for women at the highest levels of corporate oversight are staggering. If every state were to adopt California’s lead, U.S. companies in the Russell 3000 would need to open up 3,732 board seats for women within a few years. The number of women on these boards nationally would increase by almost 75 percent.

RUSSELL 3000 BOARDS

21,424

Held by men

5,088

Held by women

+3,732

Women needed by 2021

DIG DEEPER

INSPIRATION

2020 Women on Boards Gender Diversity Directory

2020 Women on Boards tracks, analyzes and publishes the gender composition of the boards of directors of Russell 3000 companies, the largest US-traded stocks.

All Our Talent: Women on Boards & Commissions Landscape Report

A landscape analysis on the state of women on boards and commissions locally and the disparities and barriers in our region’s leadership.

RESEARCH & INSIGHTS

Deloitte Board Diversity Census

This study examines and chronicles the representation of women and minorities on public company boards of directors across America’s largest companies.

Discover LCDA Latino Board Tracker

Currently, 75% of Fortune 1000 companies lack a single Latino director on their board. Use this tracker to discover which companies do and don’t have Latino/as on their boards.

EVENTS

All Our Talent: Women on Boards and Commissions Launch

Click the link to watch a video of this San Diego Chamber event, featuring First Partner Jennifer Siebel Newsom and Lieutenant Governor Eleni Kounalakis.

IN THE NEWS

Promote gender equity, and ensure our state’s media and technology industries are a force for good in child development. 

 

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