California Governor Signs Corporate Boardroom Diversity Law
This week California Governor Gavin Newsom signed a bill requiring more than 660 public corporations with California headquarters to have at least one board member from an unrepresented community or face stiff civil penalties. The measure requires at least two directors on boards with at least four members that identify as Black, Latino, Asian, Pacific Islander, Native American, Native Hawaiian or Alaska Native or as gay, lesbian, bisexual or transgender. Firms that have more than nine directors must have at least three board members that meet the above criteria. Firms that do not comply face $100,000 fines for the first violation and $300,000 for subsequent violations.
We expect similar legislation to be introduced in Illinois this spring with the new legislative session. The Illinois Chamber has great concerns about this type of legislation and has opposed similar bills introduced in the past. We will keep you informed as further action is warranted.
Also from the California Files
California Governor Gavin Newsome signed an executive order last week which will ban the sale of gasoline and diesel-powered passenger cars in that state by 2035. California often serves as the harbinger of things to come in Illinois. For now, Governor Pritzker's electric ambitions remain merely goals.