Corporations will be required to file the diversity information with the Oregon Secretary of State
HB 3110 would force publicly traded corporations based in Oregon, to change the makeup of their board of directors to meet new requirements. The bill has been introduced by Representatives Karin Power (D-Portland) and Janelle Bynum (D-Portland) and Senator Deb Patterson (D-Salem).
“Requires board of directors of publicly traded corporation to have specified proportion of female directors and directors who are members of underrepresented communitiesâ€.
Also, a female board member cannot also represent the other position representing underrepresented community. In other words, an individual who identifies as African American and identifies as a female, cannot meet the legislative requirement for both categories under
HB 3110 rules.
The corporations will be required to file the diversity information with the Oregon Secretary of State annually. If they do not, they will be subject to a $100,000 fine. In addition, if the new diversity seats on the board are vacant for an 8-month period, they will be fined $100,000 for each seat vacant. Subsequent violations will be in the amount of $300,000 per violation.
The bill gives publicly traded companies until January 1, 2022 to fill these seats and fines will start to be implemented January 1, 2023.
Oregon has many corporations that started out as family businesses, sole proprietorships or partnerships that are now publicly traded companies. Several of them have legacy family members that sit on the Board of Directors. Other board of director members often include COE’ of other companies, experts in their field related to the business sector or past executives of the company. In looking at some of the larger ones based in Oregon there is Nike, Inc., Precision Castparts, Corp., Columbia Sportswear and even Willamette Valley Vineyards. They cover a gamut of industries and have presence in the domestic and world markets. Should these companies be required to elect board members based on anything other than their ability to manage and make the company and its shareholders increased returns on their investments?
--Terese Humboldt| Post Date: 2021-02-02 17:52:21 | Last Update: 2021-02-02 20:36:37 |
