Ugg Australia Men's Store San Francisco.
California is living up to its reputation as the most progressive state in the U.S.
Gov. Jerry Brown on Sunday signed a landmark legislation that will require all publicly traded companies headquartered in California to have at least one female director on their board by the end of 2019.
By the close of 2021, the law, Senate Bill 826, would increase that required minimum number to two female directors — if the corporation has five directors — or to three female directors, if the corporation has six or more directors.
California, meanwhile, is home to at least two publicly traded shoe companies — Skechers USA Inc. and Deckers Brands (parent to Ugg, Teva, Hoka One One and Sanuk).
Goleta-based Deckers is already in good standing with the law. According to a filing with the U.S. Securities and Exchange Commission, its 10-member board currently has three female directors: former Nike VP Cynthia “Cindy” Davis, former Gap executive Lauri Shanahan and Google executive Bonita Stewart.
Skechers meanwhile, per an SEC filing, has a nine-member board comprised of only men.
For decades, the shoe industry has forged a reputation for targeting female consumers (and other minorities) with its wares but not necessarily placing enough emphasis on hiring these groups for decision-making roles.
New York-based athletic retailer Foot Locker Inc. boasts a board that is “majority female or ethnically diverse,” according to its 2018 proxy statement. More specifically, four of its 10 directors are women and one is African American and another Hispanic.
New York’s Tapestry Inc., owner of Coach, Kate Spade and Stuart Weitzman, is nearing gender parity with a board consisting of four women among seven male executives, including CEO Victor Luis. Michigan’s Wolverine World Wide Inc. is similarly situated: Its 11-member board has three women directors.
Back in California, it remains to be seen whether other private shoe brands will take inspiration from the new law and boost their female leadership: Allbirds, K-Swiss, Vans, Toms and The North Face are all based throughout California.
In the meantime, experts suggest the new law could face some legal roadblocks.
The legislation is opposed by more than 30 business groups, including the California Chamber of Commerce, which argue that it may violate existing state laws as well as the U.S. constitutions because it will “displace an existing member of the board of directors solely on the basis of gender.” Opponents have also argued that the law places gender as the main criteria of diversity over other protected classifications.
Lastly, the group of businesses opposing the legislation point out that it creates confusion and ambiguity as many firm’s with California-based headquarters, are incorporated elsewhere — mainly in Delaware.