California may soon require women on boards

California senators passed a bill Aug. 29 that could make the Golden State the first to set a quota for female representation on boards, CNN Money reports.

The bill awaits a signature from Democratic Gov. Jerry Brown. If signed into law, public companies would be required to have at least one woman on their boards by the end of 2019 or face a penalty. One-fourth of public companies based in California do not have any women on their boards.

The law would increase the quota in 2021, requiring boards with five directors to include at least two women and boards of six or more to include three or more women directors by the end of the year, according to the report.

European countries have already implemented comparable requirements. A similar but more extensive law in Norway requires 40 percent of board directors to be women. Mandatory quotas have worked to increase board diversity in Europe, according to the report.

Read more here.

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