Posted on 11/09/2019 5:04:30 AM PST by karpov
...
Last September the state enacted a law requiring all public companies headquartered in California to have at least one female director by the end of 2019 and two by the end of 2021. Democrats claimed that increasing board diversity would benefit corporations. Investors supposedly needed politicians to tell them what was in their best financial interest.
Economists at Clemson University tested this hypothesis by examining the effects of the law on public companies in California and how their shareholders reacted vis-a-vis those of companies in other states. About 28% of the 602 public firms headquartered in California needed to add a woman by the end of this year and 88% over the next two years. In total, the law required more than 1,000 additional female directors by 2021.
Firms could comply with the mandate by replacing a male director with a woman, though doing so could erode board expertise and experience. Hence, the researchers found, most firms have instead expanded their boards by adding a woman. They estimate that the median firm needing to add two female directors by 2021 will have to spend an additional $345,636 on salaries and travel.
This cost is trivial for large corporations, but the cost makes up 0.76% of the market capitalization and 13.2% of sales for the smallest 10% of firms. Younger companies are also disproportionately affected by the mandate, as are those in industries with fewer potential female candidates like engineering. For many firms, the financial penalties for noncompliance could outweigh the costs of compliance.
The economists say this explains why they found that stock market returns of affected firms declined on average 1.2% relative to other companies the day after former Gov. Jerry Brown signed the law, resulting in a wealth loss of over $60 billion.
(Excerpt) Read more at wsj.com ...
Doesn’t matter if you have a brain in that empty head, if you are the right gender, persuasion, color, ethnicity, deviance, so called religion we went you
ITS WHAT YOU ARE NOT WHO YOU ARE, For the common folk watching this insanity The beatings will continue until moral improves
Stupid should hurt a lot more than it does.
A couple of the male board members should declare themselves female - what’s a leftists to do about it?
What if a couple of the guys already on the board decide all of a sudden like - to just declare they are female?
Should be fine.
I know Californians are always supportive of gender transformation causes!
What are these companies still doing trying to operate in California? I love business, especially small business and entrepreneurs, but at some point, it’s on them.
They have to *deem* it.
Move HQ out of California, have some male board member ideantify as a woman, file lawfare suits alleging discrimination against other categories of non-binary people, etc.
“Move HQ out of California”
Too late, this trend is being shaped by the knuckleheads in Ca and some others are getting ahead of the wave coming. A few days ago, one of the firms I have holdings in announced they are hiring a new board member. It is an oil exploration company. They hired some bimbo whose background is partly in, get this, renewable energy. The company does ZERO work in renewable energy and has had some problems finding oil so it would seem to me they would look for someone with exploration knowledge or success to put on their small board. Nope. Guarantee this was a diversity board hiring as she holds no stock in the company, not one share per a recent sec filing. I guess the title will be “the send the check to me”.
Hunter Biden soon to identify as a woman.
This is no different than every other affirmative action gimmick - maintaining the illusion that assorted otherizeds can compete with white & Asian men. Look at the failure to put the same tokens into STEM fields - THEY HAVE NO INTEREST IN THE WORK & STUDY INVOLVED.
I see plenty of tokens (ethnic & gender) at construction sites - a line of them waving traffic flags while white men do the “constructing”...
Another reason for companies to abandon California.
Easy peasy- just have an existing board member Identify as a woman. Refuse to disclose who due to hippa laws.
If the courts approve this, the California legislature’s next law will require that all corporate boards contain a deserving former California legislator.
I like it.
This has GOT to be unconstitutional! It’s totally sexist, pure and simple. What right does the State have to force private companies to make gender decisions.
It’s state-sanctioned sexism! Let’s look at the gender of people and make hiring decisions accordingly.
The hypocrisy of the shallow intellectuals on the left never ceases to amaze me.
Couldn’t the existing males on the board simply “identify” as a woman? It is Kalifornia after all...
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