California has required companies to introduce diversity to their boards

The management of companies should include people from underrepresented groups of the population.

Starting next year, public companies with headquarters in California must diversify their boards regarding race, ethnicity, and sexual and gender identity.

The law, signed by California Governor Gavin Newsom, requires at least one person from underrepresented groups to be on the Board of companies by the end of 2021. By the end of 2022, there should be at least two or three such members – depending on the board’s size.

Underrepresented populations are defined in the law as people who identify as black, African-American, Hispanic, Latin American, Asian, Pacific Islander, Native American, Native Hawaiian or Alaskan, or gay, lesbian, bisexual, or transgender.