SUPPORTERS CONTINUE THE FIGHT FOR LAW REQUIRING WOMEN ON CORPORATE BOARDS DESPITE COURT DECISION

LOS ANGELES, May 16, 2022 /PRNewswire/ -- The historic California law (SB 826) requiring all public companies headquartered in the state to have women members on their boards of directors has been held to be unconstitutional by a Los Angeles Superior Court Judge. After an extensive court trial, despite testimony from witnesses who presented compelling facts and evidence supporting its constitutionality, the judge ruled in favor of a challenge brought by Judicial Watch, a conservative, right-wing organization based in Washington, D.C.  

"Supporters, including business and community leaders and women and men of all backgrounds will continue the fight to uphold this law," said former State Sen. Hannah-Beth Jackson, author of SB 826. "The law recognizes that women have been significantly discriminated against for decades as potential candidates for corporate boards of directors. Government officials and agencies, including CalPERS and CalSTRS, the state's powerful institutional investors, have been urging companies for years to open their boardrooms to add women, with little success until SB 826 became law," added Jackson.

According to research by the nonprofit 50/50 Women on Boards™, the law has achieved impressive results. The number of board seats in California held by women has doubled since the law was enacted in 2018. At that point in time, women held only 16% of board seats among California's public companies in the Russell 3000. As a result of the law, as of year-end 2021, women now occupy 32% of those seats which is higher than the national average of 27%.

"Such progress would not have happened without SB 826. However, today among the 522 CA corporations in the Russell 3000, there are still 26% (135) that have failed to comply with the law." said Jackson.

Responding to the trial court judge's decision, Jackson said, "This decision is only a temporary setback for women on boards and represents just the first phase of a long fight ahead. It is a serious mistake to invalidate this historic law which not only corrects generations of discrimination against more than half the population of our state and nation, but also brings major benefits to businesses and the economy overall. We are confident this decision will be appealed by the State of California, and that SB 826 will ultimately prevail in the state's appellate courts."

Amber Wallace, statewide president of the National Association of Women Business Owners-California which sponsored SB 826, indicates that "Women business owners are experts at growing companies and building relationships for business development. We know from the first-hand experience of our members that companies led and managed by women are profitable and productive, which parallels research findings indicating corporate boards benefit from having women directors. We started this campaign ten years ago, and we will continue to educate the business community and the public about the value that women bring to the economy--as business owners and as directors on boards."

"Today, shareholders and consumers have more influence and play a more visible role in corporate board decisions, and there is growing recognition, supported by independent research, that companies with women directors are more profitable, more productive and the workforce more engaged," explains Heather Spilsbury, COO of 50/50 Women on Corporate Boards.

"We at 50/50 Women on Boards are extremely disappointed with this decision challenging SB 826," concludes Spilsbury. "We call upon the business community, along with all women and men, to continue this fight proactively, in the media, in courts and in boardrooms, to ultimately achieve gender-balance and diversity on corporate boards of directors."

About California State Senator Hannah-Beth Jackson (retired)
Hannah-Beth Jackson, author of SB 826, served in the California legislature for 14 years before leaving office as a member of the State Senate in December 2020, due to term limits.
To reach Sen. Jackson, www.hbjackson.com

About National Association of Women Business Owners-California
NAWBO-California represents the issues and interests of 1.55 Million women business owners in CA across 11 chapters, propelling women business owners into greater economic, social and political spheres of power worldwide. In 2018, NAWBO-CA made history with the passing of Senate Bill 826 that requires the addition of women directors to all publicly-held corporate boards headquartered in California. www.NAWBOCA.org

About 50/50 Women on Boards (50/50WOB)
50/50 Women on Boards™ (50/50WOB) is the leading nonprofit 501(c)3 education and advocacy campaign driving the movement toward gender balance and diversity on corporate boards. For more information, visit www.5050wob.com.

SOURCE 50/50 Women on Boards