California Invites More Corporate Board Diversity

As the nation's largest public pension fund, with over $224 billion in assets, the California Public Employees' Retirement System (CalPERS) recognized two years ago the need for more diversity on corporate boards.  Today, CalPERS announced that it was taking the next step in the inclusion journey by inviting applicants to submit their information to the Diverse Director DataSource .

Ostensibly, the registry will be a resource for institutional investors, public companies and others who want to tap into the reservoir of diverse talent for corporate directors.  According to one key observer, "investors looking for ways to increase corporate value will find such voices in the corporate boardroom indispensable to boosting the bottom line."

As a director, lawyer, and longtime observer of board practices, I hope more jurisdictions follow the California lead. A broader set of experiences and perspectives, typically brought by diverse directors, should allow corporations to become more sensitive to consumer concerns in a down economy, while not sacrificing the duty to improve shareholder value.