trending Market Intelligence /marketintelligence/en/news-insights/trending/fsaYXjOij6sO1MMsm0FJug2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Calif. gender diversity law expected to more than double female-held board seats

Strong adoption of AI/ML monitoring tools is driven by tech leaders

Amazon e-commerce sales soar amid COVID-19

European Energy Insights - October 2020

Banking Essentials - October 2020

Calif. gender diversity law expected to more than double female-held board seats

California's new law requiring certain publicly traded companies to include women on their boards will more than double the total number of female-held board seats in the state. In two other states that are considering similar legislation, the number of women-held corporate board seats could see a comparable increase, according to an analysis of S&P Global Market Intelligence data.

In September 2018, California became the first state in the nation to enact a board gender diversity mandate, and Democratic lawmakers in four additional states have since introduced related legislation, three of which would largely mirror California's law.

SNL Image

California requires all publicly traded companies with "principal executive offices" in the state to have at least one female director by the end of 2019. Affected companies with five-member boards would need at least two women directors by the end of 2021, and those with boards of six or more members must have at least three female directors before then.

Related board gender diversity bills that would set the same thresholds but with varying deadlines have been introduced in Illinois, New Jersey and Massachusetts.

As of Feb. 12, women held 873 of 5,304 seats on the boards of 684 California-headquartered publicly traded companies. Assuming that all women currently serving on those boards remain in their positions, the state's new gender diversity mandate effectively would require those companies to dedicate at least another 1,076 seats to women by the end of 2021. The law says companies can fill existing seats or expand their boards to comply.

SNL Image

If the proposed Massachusetts and New Jersey laws are enacted, the number of female-held board seats in those states would increase from 369 to 741 and from 209 to 458, respectively. While the Illinois legislation would not quite result in a doubling of women-held seats, they would increase 273 to 464 if that mandate passes.

The first deadline under the California measure will hit smaller companies the hardest, given that many larger corporations already have at least one female director on each of their boards. And some of the state's largest companies by market capitalization, including Adobe Systems Inc., Facebook Inc., Visa Inc., Chevron Corp., Wells Fargo & Co., Oracle Corp., Walt Disney Co., Netflix Inc., inc., and Amgen Inc., already meet the second threshold requirement. But others, such as Apple Inc., Alphabet Inc., Intel Corp., Cisco Systems Inc. and Broadcom, would have to add at least one more woman to their board ranks by 2021.

SNL Image

The state legislation and California mandate come as companies are under increasing pressure to adopt a variety of gender diversity-related practices. A number of major asset management funds and influential proxy advisory firms have pressed companies listed on either the Russell 3000 or S&P 1500 indices to include women on their boards, noting that studies have found board gender diversity to be positively associated with better company performance.

Of all the California companies to which the law applies, about 27% currently have no female directors. And companies in some industries in California are further along than others when it comes to including at least one women on their boards. Although the healthcare and the technology, media and telecommunications sectors together comprise about 63% of all impacted California companies, they appear to have the furthest to go on complying with the law. About 32% of companies in the healthcare sector and 31% of corporations in the technology, media and telecommunication sector currently have no female directors.

SNL Image

Since this data was first compiled, some companies may have moved headquarters from or into the states reviewed for this article. Moreover, a small number of companies were excluded from the analysis because the gender identities of those companies' board members were not readily obtainable.