At the end of September 2018, California passed a groundbreaking bill. By the end of 2019, companies with headquarters in California will be required to have at least one woman on their board of directors. This number goes up for larger companies with larger boards. If the company has five directors, there must be at least two women on the board, and companies with six board members will have to include at least three women on the board, by the end of 2021. This change might be slow, but it is nonetheless significant, in these following ways.

First, this move will ignite a trend.

Hopefully, more states join the movement to mandate women be present on the board of directors of companies headquartered in every state. This is not to say gender should be placed above other factors of diversity, but representation is a key factor to success. Moreover, with more women on boards, climbing the corporate ladder will become less of a hurdle for women.

Companies will face fines if the requirements are not met.

The fines range from $100,00 to $300,000 for repeat failures. Although this might be the main incentive right now, in the future the added success of the companies will be of greater focus and value. Having these fines in place guarantees that all companies will be held to the same standards.

Corporate boards will represent the people they serve.

Governor Jerry Brown supports the bill because "it's high time corporate boards include the people who constitute more than half the 'persons' in America." With support from men for the new bill, it will influence a change in the culture at the top level of companies.

Companies will see an increase in profits.

Based on a study which surveyed over 2,000 companies worldwide, indicated improved business performance was linked to the presence of women on the board of directors. The most significant improvement takes place on the stock market. This is an obvious advantage to employing women, but change is likely to be slow. However, it is important not to rush this process as a change in culture requires readjusting to new norms.

The diversity issue in Silicon Valley tech companies is being addressed.

A ripple effect of this law means tech companies will also be held accountable and held to the same standard as other companies. In recent years, companies like Google and Facebook have undergone increased scrutiny over the lack of diversity both in the boardrooms and workplaces.