Corporate Board Diversity Backslides as Mandate Laws Flounder

The latest court finding that a California corporate board diversity mandate is unconstitutional comes as companies are lagging in diversifying boards on their own.

California statutes directing companies based there to appoint women and minority or LGBTQ board members are still unsettled in state and federal courts following a Sacramento federal judge’s May 16 decision against mandating directors from underrepresented groups. In tandem with those legal setbacks, there’s doubt how far companies will pursue diversity after the percentage of board seats filled by minorities has dropped since 2021.

Diversity law challenges pending in the courts underscore that “just trying to ...