Lilly-Backed Measure Giving Women, African-Americans a Voice on Corporate Boards Passes House

SPRINGFIELD, Ill.  – Women and African-Americans will be ensured a seat in the corporate boardroom under legislation recently passed by state Rep. Camille Lilly, D-Chicago, requiring Illinois’ publicly held corporations to prioritize gender and racial diversity on their boards of directors.

“It’s important that the leadership of large companies in Illinois reflects the diversity of our state,” Lilly said. “For too long, women and African-Americans have been excluded from the opportunity to serve on corporate boards and this measure will make sure they are represented.”

Lilly sponsored House Bill 3394 and voted to pass the bill out of the House last week. Lilly’s measure requires publicly held corporations based in Illinois to have at least one female and one African American on their board of directors by the end of 2020. The bill also allows the secretary of state’s office to fine corporations that are not in compliance with the law and requires the office to publish an annual report on the diversity of corporate boards in the state. Research from the Harvard Law School Forum on Corporate Governance and Financial Regulation and the Credit Suisse Research Institute show that diverse corporate boards outperform their competitors in profitability, risk management, share price, social governance and valuation.

“It’s clear that having a diverse corporate board means more success for businesses because more experiences and perspectives are represented in the development of products and services,” added Lilly. “I encourage my colleagues in the Senate and Governor J.B. Pritzker to support this measure.”