In presenting his report, the Secretary-General recalled that the first review of mandates had been conducted, at the request of the membership, in 1954, when Dag Hammarskjöld had concluded that “the very nature of the responsibilities that must be assumed by the Secretary-General and his senior staff imposes a limit on the volume of the tasks that can be handled effectively”.Secretary-General Annan said that was even truer in 2006, when the number of mandates were so much greater.Sunwoo Hwang is a Ph D candidate at the University of North Carolina Kenan-Flagler Business School; Anil Shivdasani is the Wells Fargo Distinguished Professor of Finance at the University of North Carolina Kenan-Flagler Business School; and Elena Simintzi is Assistant Professor of Finance at the University of North Carolina Kenan-Flagler Business School. On September 30, 2018, California enacted Senate Bill 826 mandating that all publicly-traded companies headquartered in the state to have at least one female director by the end of 2019.The law further requires that by year-end 2021, all firms have at least one female director if the board has four members or fewer, two female directors if the board has five members, and three female directors if the board has six members or more.If discrimination or biases prevent women from being appointed to corporate boards, endogenously determined boards will not be optimal for shareholders since they will not reflect the benefits of gender-diversity.
It had also merged two departments into a unified Department of Economic and Social Affairs.
Using the pre-legislation variation in board composition and the differing thresholds on female representation mandated by the law as a source of exogenous variation, we show that the decline in shareholder wealth effects is related to the requirements for female director additions.
Announcement returns are more negative for companies for which the legislation is more binding and firms with a greater shortfall of female directors experience sharper declines in shareholder wealth than firms closer to the legislative requirements.
“We certainly can—and will—do better,” Paul Weiss Chairman Brad Karp said, apologetically.
He blamed “an idiosyncratic demographic pool” and lamented that “one particular year would erase the firm’s diversity achievements over the past 75 years.” Karp has stated that one partner in the class is Latino and another is LGBTQ.