Seats promoting diversity in the board room may be opening up, state-by-state. The diversity we are referring to is women, who have been under-represented in the executive halls of U.S. public companies.
Individual states are taking on the status quo with initiatives to help instill diversification. Most recently, California implemented a minimum number of women on boards of publicly traded companies headquartered in the state. California would be the first state to mandate such a requirement and as the first out of the gate, may be setting a new standard for the corporate world.
A new look
Currently, women comprise over 19 percent of board seats on publicly-traded companies in the Fortune 1000 according to 2020 Women on Boards, a non-profit entity. California is headquarters to 86 public companies in the Russell 3000 Index that report not having any women on their boards. The state is also home to several highly influential technology companies.
European governments, specifically the Scandinavian countries of Norway, Iceland, Finland and Sweden, have all had mandated quotas for women on boards for some time. Companies headquartered in the Scandinavian countries have female representation on corporate boards upwards of 30%.
Where do we go next
There is an urgency for business to incorporate a healthier balance of women into their corporate strategies for sustainable growth, to attract top talent and to demonstrate leadership through healthy values. Women’s empowerment is good for business. Wage equality, increased staff commitment and a larger customer base are just a few perks of a professionally gender-balanced workforce.
Gender parity and diversity starts with the tone from the top, in the board room. As more businesses make moves to open up seats to women, more women will be inspired to share their expertise in new sectors and to experiment with new ideas. That’s half our population – today’s working generations and those of tomorrow – being inspired to take on a broader, more engaging view of their role in the workforce.
Take financial control
This movement at the board level is important. So is another we’ve got going at Wambolt & Associates. Women, Wealth & Wisdom is helping women at all stages of life lean in and learn with like-minded women about financial health and wealth. Join Women, Wealth & Wisdom for access to resources and exclusive live events, or to engage Cindy to work with your organization. Classes are filling now. Click here to claim your spot. Cindy can be reached directly at (720) 962-6700 or cindy.alvarez@wamboltwealth.com.
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