A Hard Look At CA’s New Law Requiring Women On Corporate Boards

By on November 9, 2018

November 9, 2018

After a resolution that “urges” more equitable representation of women on corporate boards appeared to be having little effect, California passed a bill that requires it. In a Wharton School of Business post, two professors discuss California’s new board gender diversity law. Katherine Klein, a professor of management and a vice-dean at the Wharton School, says there are good reasons to have women on corporate boards, but she takes issue with one stated premise of the California bill: that more women on the board will improve a company’s bottom line. She acknowledges there are studies that show that it will, but she says others come to no such conclusion and she warns against cherry-picking. “There is no business case for putting women on the board. There is no business case for putting men on the board,” she says. “Gender has zero impact.” This post is an introduction to a podcast featuring Klein and Annalisa Barrett of the University of San Diego School of Business, as they discuss the implications of California’s new law.

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