Illinois corporate board diversity slow going

From: POLITICO Illinois Playbook - Monday Apr 24,2023 12:07 pm
Presented by American Beverage Association: Shia Kapos' must-read rundown of political news in the Land of Lincoln
Apr 24, 2023 View in browser
 
Illinois Playbook

By Shia Kapos

Presented by

American Beverage Association

Happy Monday, Illinois. I hope your Earth Day included the outdoors.

TOP TALKER

House Speaker Emanuel

House Speaker Emanuel "Chris" Welch, speaking to reporters after he was named speaker, carried the bill to diversify Illinois corporate boards. | Pool photo by State Journal-Register's Justin Fowler

SCOOP: A state law designed to diversify Illinois-based corporate boards is having mixed results, though House Speaker Emanuel “Chris” Welch, who sponsored the legislation, remains optimistic about the data.

The numbers are meh: While women’s representation on corporate boards has reached more than 20 percent on average, they are underrepresented in most companies compared to their workforce. And non-white minorities are even more underrepresented relative to the state’s population.

“I’m pleased that we’re breaking the glass ceiling for women and getting them at the table, but I’d also like to see those numbers improve for Blacks, Latinos and Asians,” Welch told Playbook in an interview.

He carried the bill in 2019 before becoming speaker in 2021. The measure was signed into law by Gov. JB Pritzker.

It requires Illinois companies to list their corporate-board makeup based on sexual orientation, race or ethnicity. The data is then compiled and analyzed by University of Illinois experts, who report the results. The thinking was that making the numbers public will nudge companies to act. Here’s the full report.

The goal is part of a nationwide effort to improve on environmental, social and governance (ESG) investing. ESG has been broadly embraced, though it’s also faced backlash recently from companies who see it as “woke” politics.

Welch says he’s only heard positive feedback from Illinois business leaders, even if the numbers aren’t yet panning out.

“Corporations want to make improvements,” he said, describing the phone calls he’s received from company execs. It’s anecdotal, but it’s enough to keep him positive. “We got their attention. I think it will only continue to improve.”

Proving his point. Last week, Chicago-based BMO Harris Bank named Darrel Hackett, who is African American, as its new CEO and board chairman.

By the numbers: 17 percent of the companies that filed reports have fewer than two female directors and three firms (2.9 percent) report having no female directors at all.

Comparatively: “Illinois firms are more likely to have only zero, one, or two female directors," as compared to S&P 500 firms, which are more likely to have three or more female directors, according to the report.

Firms with women at the table: Tootsie Roll Industries, OFS Credit Co., Ulta Beauty, Morningstar and Nanophase Technologies Corp. all exceed the 20 percent minimum threshold that gender equity advocates suggest, according to the report.

African Americans “are particularly underrepresented” among corporate directors. Of the firms reporting, 32 firms had no Black board members ,and 34 had one. “For the average board, Black directors comprise about 9 percent of the total board membership,” according to the report. By comparison, Black directors comprise about 10 percent of total board membership for the average S&P 500 board.

Asian and Latino representation: There are 59 firms that have zero Asian directors and 26 firms that have one Asian director. And 72 firms report zero Latino directors, while 21 firms reported having one Latino on the board.

LGBTQ representation: Three firms indicated having one director disclosing an LGBTQ+ identity, while 22 firms disclosed having zero and 75 firms didn’t disclose at all.

 

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THE BUZZ

FIRST IN PLAYBOOK: Illinois Secretary of State Alexi Giannoulias has issued a 100-days “Getting It Done” report that includes accomplishments centered on modernizing outdated technologies.

The report also includes efforts to ramp up ethics standards and curb the use of fleet vehicles for personal use.

“We need to start by changing the culture internally and show that we are serious about holding ourselves accountable, operating more efficiently, cutting waste, and restoring public trust,” Giannoulias says in the report.

Nuts and bolts: The office is working to improve IT systems, redesigning the lobbyist database and redrafting rules to enable certified notaries to work virtually.

People pleaser: Giannoulias has implemented a “skip the line” feature that allows you to schedule an appointment at the DMV instead of waiting in line.

Other actions: The office is simplifying the public’s ability to submit complaints to the Inspector General’s Office and starting an ad campaign to promote job openings.

About carjackings: Giannoulias also has provided financial grants to six law enforcement groups to improve efforts to combat carjackings and motor vehicle thefts.

If you are Darrel Hackett, Playbook would like to know what banking legislation you'd like Illinois lawmakers to address. Email skapos@politico.com.

 

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WHERE'S JB

No official public events.

WHERE'S LORI

At Midway Airport at 2:30 p.m. to cut the ribbon on The Orange Line restaurant, a new concessions offering at the airport.

Where's Toni

At the Cook County Professional Building at 10:40 a.m. with Sen. Tammy Duckworth to highlight federal funds for the Caring for High-Risk Infants project.

Thank you for reading Playbook! Drop me a line sometime: skapos@politico.com

CONVENTION ZONE

Should Dems have picked a swing state for their 2024 convention? “While picking Atlanta would’ve made a strong statement about Democrats’ plans to compete in the Sun Belt, it would have been purely symbolic,” by FiveThirtyEight’s Nathaniel Rakich. With charts and data

CORRUPTION CHRONICLES

Could Michael Madigan be bought? “Jurors to weigh central question in ‘ComEd Four’ trial after closing arguments today,” by Tribune’s Jason Meisner and Ray Long

 

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THE STATEWIDES

State lawmakers debate bill on human composting, which proponents say is an eco-friendly way to deal with remains: The debate “included references to the 1973 dystopian thriller ‘Soylent Green,’” reports Tribune’s Jeremy Gorner.

Work at State Capitol complex will shut down Monroe Street, by State Journal-Register’s Steven Spearie

LGBTQ residents moving to Illinois from states with conservative agendas, by Tribune’s Lizzie Kane

— POT POURRI: Two new cannabis stores prepare to open in Springfield, by State Journal-Register’s Zach Roth

ELECTION FALLOUT

Johnson’s win as mayor furthers Democratic leftward tilt as party examines big tent philosophy: “The potential for increased friction between moderates and progressives threatening the party’s future has grown to the point that a special committee was formed by Cook County Democrats to determine what it means to be a Democrat in today’s political climate,” by Tribune’s Rick Pearson and John Byrne.

Paul Vallas sues consultant who allegedly defrauded campaign out of $680,000: “Chimaobi Enyia, hired to get out the vote in Black communities, is accused of being paid for work he refused to give an accounting of or return when confronted by Vallas,” by Sun-Times’ Tom Schuba and Fran Spielman.

— How Vallas spent campaign cash: The mayoral candidate paid $9.8 million to campaign consultant Joe Trippi’s Lever Communications, which ran TV ads; $1.8 million to Redhorse Strategies; and nearly $270,000 to M3 Strategies, a polling company that claimed it was polling independently. M3 is led by Matt Podgorski, a former Republican candidate for Cook County Board.

 

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CHICAGO

Lightfoot offers blunt takes on Chicago crime and corporate equity efforts: "There are parts of my city that look like the fires of '68 just got put out," Chicago Mayor Lori Lightfoot said at the meeting of the African American Mayors Association. "Black people have been representing those areas forever. Why is it that we have taken so long for ourselves to wake up? If we are content with crumbs, our people will never, never prosper." Mark Walsh reports for Crain’s.

More take-aways, from Sun-Times’ Lynn Sweet

Mayor-elect Johnson’s plans to double number of summer jobs for Chicago’s teens might require some work: “Johnson will take office just two weeks before the city’s deadline to apply for summer employment, and he will be locked into a budget set by the previous administration,” Mariah Woelfel.

Hundreds march in the Loop to reach out to teens who caused chaos last weekend, by Sun-Times’ Violet Miller

CTA’s struggle to address safety and other issues takes time and money from riders’ pockets, by Tribune’s Sarah Freishtat

Historian Shermann Dilla Thomas leads visits to South and West Side neighborhoods, with Sun-Times’ Neil Steinberg

— OPINION: Downtown is a neighborhood, too. Give it the respect it deserves, writes Crain’s Greg Hinz

— Get well, John Greenfield. The Streetsblog Chicago blogger was injured in a downstate biking accident and is hospitalized in Carbondale, according to a post to his blog.

COOK COUNTY AND COLLARS

— Da Bears bill: State Rep. Marty Moylan explains his proposed measure in Springfield “to move the ball forward on the Chicago Bears’ plan to build a new stadium and entertainment complex in Arlington Heights,” via interview with WTTW’s Paris Schutz.

DAY IN COURT

Two former Cook County assessor’s employees charged in bribery scheme: “Golf outings worth nearly $3,500 were exchanged for property tax reassessments that lowered valuations on two properties by about $81,000, federal prosecutors say,” by Sun-Times’ Violet Miller.

Woman whose murder convictions were overturned sues city, Chicago police detectives, by Sun-Times’ Emmanuel Camarillo

TAKING NAMES

— Jeffrey Irvine Cummings and LaShonda A. Hunt have advanced on a bipartisan vote to be considered by the U.S. Senate as U.S. District judges for the Northern District of Illinois.

— Lisa Curcio Gaston, a retired Cook County judge, is now the Chicago Yacht Club new commodore — and the first woman to head the club in its 148-year history, by Sun-Times’ Stefano Esposito.

— Ken Griffin, the Citadel CEO, has donated $20 million to Miami Dade College to set up the Griffin Scholarship Fund for Miami-Dade high school graduates who attend the college. Details

 

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Reader Digest

We asked what legislative issue you’re following:

Randy Bukas: “The changes to the Local Government Distributive Fund to restore local governments’ share of the income tax back to 10 percent of the receipts.”

Alec Lopata: “Bills that solve problems for nonprofits, including a charitable giving incentive that doubles as middle-class tax relief (HB 1241), a bill raising the audit threshold for nonprofits since we have the worst threshold in the entire country (HB 1197) and a bill that waives lobbyist registration fees for small nonprofits (SB 1349).”

John Lopez: “Legislation related to mental health, especially HB 475.”

Dan Schneider: “Bills that will benefit Illinois consumers, particularly HB 3314. It would require debt collectors to pay a defendant's attorneys fees if the creditors' original lawsuit asks for attorneys fees, if the plaintiff-creditor loses or voluntarily dismisses the case.”

What’s South Side restaurant you’d take a guest visiting Chicago for the first time? Email skapos@politico.com

DELEGATION

Why Congressman Eric Sorensen voted with Republicans on resolution related to D.C. policing: “Sorensen's reasoning for the vote, however, appears to have little to do with policy or what he believes in, and everything to do with political gamesmanship and re-election,” reports Peoria Journal Star’s JJ Bullock.

THE NATIONAL TAKE

Gun violence is actually worse in red states. It’s not even close, by POLITICO's Colin Woodard

Wall Street starts to fear a debt limit crisis, by POLITICO’s Ben White, Sam Sutton and Eleanor Mueller

Why Biden world cares — a lot — about when he announces his reelection, by POLITICO’s Christopher Cadelago, Holly Otterbein and Jonathan Lemire

Biden eyeing former Booker campaign aide for top reelection role, by POLITICO’s

IN MEMORIAM

— Heidi Keye Biederman was executive director of the Large Unit District Association, “where she represented the 56 largest school districts in Illinois” and was an elected board member and president of School District 41 from 1976 to 1981, via obituary.

TRIVIA

FRIDAY’s ANSWER: Congrats to Mary Kay Minaghan for correctly answering that Patrick Pendergast, who was convicted of murdering Chicago Mayor Carter Harrison Sr., is the only client of Clarence Darrow’s to be executed.

TODAY’s QUESTION: Who did Chicago’s first Black mayor name as his first chief of staff? Email skapos@politico.com

HAPPY BIRTHDAY

Former Mayor Richard M. Daley, state Rep. Justin Slaughter, Cook County Circuit Court Judge Preston Jones Jr., former state Rep. Maria “Toni” Berrios, LaSalle Network CEO Tom Gimbel, Clayco's Roz Skozen, Medill professor emeritus Owen Youngman, WE Communications’ Lara Weber and Newberg Group’s Abby Walsh.

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