Italy just passed a law requiring one-third of board seats go to women. A few irreverent questions:
- Will this government regulation ruin Italy's economy?
- Will Italian corporations move to other countries that let them keep their old-boy networks intact?
Whenever someone proposes regulating boards of directors in the US, a chorus of Chicken Little warnings are sounded along the lines of the above questions.
But European countries have been regulating corporate boards for a long time, and their skies never fell.
In the US, only 16% of board seats are held by women. What justifies this? Women just don't have what it takes? They aren't interested in these types of positions?
If the US is ever going to bring corporations in line with our values, then we'll have to start regulating them. It's been amply proven that our highest values don't match theirs.