Bill aims to force boards to diversify
Some say Illinois legislation is unconstitutional
Some of Illinois’ largest companies would have to take a critical look at who’s calling the shots in their boardrooms if a bill making its way through Springfield becomes reality.
The legislation, which narrowly passed the House last month, would require any publicly traded company with an Illinois headquarters to have at least one woman and one African American on its board of directors by the end of 2020 or face a fine of $100,000. Last week, the Senate version of the bill added an amendment requiring a Latino board member.
The legislation, which experts say could face a legal challenge if it becomes law, comes on the heels of a bill passed last year in California that required public companies headquartered in the state to have at least one woman on their boards by year’s end. While some companies are taking steps themselves to improve their diversity, advocates for the bill say Illinois companies need an extra push to add new faces, experiences and backgrounds to weigh in on matters like a company’s strategic direction, senior leadership and finances.
A Tribune review of the state’s 30 largest companies, as measured by their May 3 stock market valuations, found that when it comes to recruiting minorities for their boards, there would be a lot of work to do before the end of next year. The review found African American directors hold 9% of the seats and Latinos, just 2%, though not all companies re
A Tribune review of the state’s 30 largest publicly traded companies, as measured by their May 3 stock market valuation, found all are run by boards that are predominantly white.