From the JB Pritzker Administration:
Gov. Pritzker Signs Legislation Prioritizing Diversity in Corporate Leadership
Chicago — Governor JB Pritzker signed legislation today that works to increase diverse voices on corporate boards across the state.
“As a result of this legislation, in the coming years, both the legislature and the public can review the gender, racial and ethnic makeup of the governance of large businesses that call Illinois home,” said Governor JB Pritzker.
“Better diversity among leadership leads to reduced turnover, increased growth and improved market share.
“That’s good business, and it advances my vision of an Illinois where both businesses and working families thrive.”
The new law directs publicly-traded companies headquartered in Illinois to submit an annual report to the Secretary of State’s Office on the representation of female and minority board members in the company and their practices for identifying and appointing diverse leadership to their board.
The University of Illinois systems will then study the demographic makeup of boards across the state and establish a rating system for those businesses in an effort to increase diversity in corporate leadership.
Beginning in 2021, reports from corporations will report to the Secretary of State’s Office by January 1 each year, and the U of I will publish its analysis by March 1 of each year.
House Bill 3394 takes effect immediately.
“I introduced this bill and feel so passionately about this issue because there’s not a day that goes by that I don’t think about creating a brighter future for my children,” said Rep. Chris Welch (D-Hillside).
“I am committed to fostering a business environment that offers the same opportunities for my son, daughter, and all women and people of color that are afforded to their peers.”
“With this new law, we will be able to pinpoint the corporations who aren’t diversifying,” said Sen. Christopher Belt (D-Centreville).
“Illinois is a very diverse state, and boards should reflect the diversity of its employees, consumers and community.”
A state that can’t truly balance a budget or fully fund its pensions or retiree healthcare decides to mandate that private organizations file paperwork with the state so the politicians can get votes in the name of diversity transparency.
Their lack of discipline and priorities is mind numbing.
If someone wants to lobby a corporate board to increase the diversity of the board, they are free to do so.
“Better diversity among leadership leads to reduced turnover, increased growth and improved market share.”
What exactly does “better” mean? Is there proof? If it is so good, “better diversity”, and leads to a better business, then a law is not needed. Business leaders will do diversity on their own without a law.
Another crash at the intersection of Arrogance and Stupidity.
“and boards should reflect the diversity of its employees, consumers and community”.
No they shouldn’t.
The best people should get the job.
Period.
We shouldn’t hire someone based of the amount of melanin in their skin or what their genitals look like.
E Pluribus Unum anyone?
How do we achieve that motto when we allow our government to continue to concentrate on breaking the population up by different groups based on race, national origin, religion, annual income, etc.?
We can forget about categorizing people based on sex because anyone can be a girl or boy based on which way the wind blows.
When will we cease publishing voter lists based on sex?
When will we stop reporting voting patterns based on sex?
Government needs to stay the hell out of the board room of private corporations.
No honest Republican would have voted for this insult.
Legislation like this is dumb as a pile of $hit
What will they come up with next?
Unconstitutional.
The taxes in this state are bad enough, they really don’t need to double down with a bunch of pointless virtue signalling red tape that will accomplish absolutely nothing.
Maybe Pritzker and his cronies have some diabolical plan to buy up everything for pennies on the dollar after they’ve driven out every productive citizen and every profitable business.
Utter and complete bullshit.
Democrat Governor JB Pritzker signed House Bill 3394 (HB 3394) into law as Public Act 101-0589 (PA 101-0589) on August 27, 2019.
This new law puts an unfunded state mandate on the University of Illinois system, which along with all higher education in Illinois consistently lobbies for more funding from the state.
Not to mention the high cost of higher education is widely recognized.
“(d) Beginning no later than March 1, 2021, and every March 1 thereafter, the University of Illinois Systems shall review the information reported and published under subsection (c) and shall publish on its website a report that provides aggregate data on the demographic characteristics of the boards of directors and executive officers of corporations filing an annual report for the preceding year along with an individualized rating for each corporation.
The report shall also identify strategies for promoting diversity and inclusion among boards of directors and corporate executive officers.
(e) The University of Illinois System shall establish a rating system assessing the representation of women and minorities on corporate boards of directors of those corporations that are publicly held domestic or foreign corporations with their principal executive office located in Illinois based on the information gathered under this Section.
The rating system shall consider, among other things:
compliance with the demographic reporting obligations in subsection (c);
the corporation’s policies and practices for encouraging diversity in recruitment, board membership, and executive appointments;
and the demographic diversity of board seats and executive positions.”
ilga.gov
Re: ” publicly held domestic or foreign corporations with their principal executive office located in Illinois”
Is this why Walgreens is moving out and McDonalds is moving several staff members?
Takeda Pharmaceutical is gone.
What next?
Abbott?
They have already moved much of their manufacturing offshore.
Someone must need a job, so let’s make some office & paperwork up for them to do.
Wonder how much they offered to pay for the job position hum…. interesting… wonder if the feds r listening to see if there are more taped phone calls on job opportunities in the Fred Flintstone office?
Walgreens, McDonalds, and Mondelez (Oreo, Ritz, Trisquits), and others moved / are moving their corporate headquarters to the downtown area of Chicago.
Some of the suburban corporate headquarters have moved from the suburbs to the downtown area, meaning not only the loop, but also areas near the loop.
One aspect is a lot of Millenials like to live and work in the city.
Takeda is moving to the Boston area.
++++++++
It’s legislation such as this that, cumulatively, that makes business more expensive.
When you hear of too many laws and over regulation, it’s the cumulative effect that makes the difference.
Not necessarily any single law or tax, although sometimes there is the straw that breaks the camel’s back.
Some companies and people get sick of it and move.
And like any other customer, once they are gone, they can be hard to replace.
That is becoming a concern in highly regulated, high tax states such as Illinois, Connecticut, New Jersey, New York, and California.
A key word is sustainable.
Can the government deliver what it said it will and current taxation and services.
At many local, the State level in Illinois, and the Federal government level, the answer is no.
Amish transgendered biracial (African & Eskimo) autistic alcoholic paraplegic deaf veteran (Al Queda) needs a spot on Cateperpillar Borad of Directors.
I’m waiting!
I’m entitled.
I’m so entitled I could cry.
In fact I will.
Bwaaaaaaaaaaaa!
Fatty Prizk said!
I’m the perfect board addition!
And I want it now!!!
Things like this boil my blood.
That’s just how civil wars start.