Boardroom Governance with Evan Epstein

Ahmad Thomas: "We Made a Decision to Stand on the Side of Progress by Supporting AB-979"

Episode Summary

In this episode, I talk with Ahmad Thomas, the President & CEO of the Silicon Valley Leadership Group, a public policy association that represents more than 360 companies shaping the future innovation economy of Silicon Valley, the Bay Area, and the nation. We discuss the recent passage of AB-979, the new California law that mandates a minimum number of directors from underrepresented communities on boards of directors of California public corporations. The Silicon Valley Leadership Group was one of the first and most prominent business organizations to endorse this legislation. But we also discuss broader topics involving governance of public and private companies in Silicon Valley and beyond. If you like this show, please consider subscribing, leaving a review or sharing this podcast with colleagues or friends. You can also subscribe to the Boardroom Governance Newsletter at evanepstein.substack.com

Episode Notes

  1. Start of interview [1:11]
  2. Ahmad's "origin story" [1:52]
  3. His experience as senior aide to U.S. Senator Dianne Feinstein in Washington, D.C. (2005-2010) [4:29]
    1. TARP Programs
    2. Dodd Frank Act
  4. His experience with Barclays Investment Bank covering public sector infrastructure (2010-2020) [7:41]
    1. Led Barclays’ California and Silicon Valley regional municipal banking team.
    2. Led Barclays' public sector coverage of social impact engagements in the 13 western U.S. states.
    3. Served as a lead banker on several innovative transactions, most notably executing the first ever Social Bonds issue for a non-profit in the U.S. municipal bond market.
  5. Introduction of the Silicon Valley Leadership Group, founded in 1977 by David Packard of HP [11:19]
  6. Membership of the SVLG: about 360 companies. [13:39] "That's where the juice comes from. When we speak on behalf of these Silicon Valley companies, there is a real opportunity to impact positive change not only in Silicon Valley but also in corporate America."
  7. Board of SVLG "represents some of the best and brightest of Silicon Valley" [15:15]
  8. The new AB-979 California Board Diversity Legislation [16:27]
    1. Introduced by CA AssemblyMember Chris Holden.
    2. On September 30, 2020, Governor Newsom signed AB 979, which requires publicly held corporations headquartered in CA to diversify their boards of directors with directors from “underrepresented communities” by December 31, 2021.
    3. AB 979 defines “director from an underrepresented community” as “an individual who self-identifies as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender.”
  9. "What's so significant [for SVLG] is that we made a decision to stand on the side of progress" [18:35]
  10. The precedent of SB-826 [19:13]
  11. "I'm just so proud to stand with our executives and member companies to drive some serious change in a smart and responsible manner." [20:26]
  12. What piqued his interest in corporate board diversity: "some of this is very personal" [21:29]
  13. "The statement being made [with AB-979] was one that we [SVLG] wanted to stand in line with" [24:20]
  14. "The shareholder oversight questions are extremely serious and significant for public companies, especially for tech companies" [27:30]
  15. SVLG is developing tools to help on diversity initiatives (such as a database/repository of resumes) [29:09]
  16. Impact of Black Lives Matter movement in corporate America and SVLG [30:26]
  17. "There is overwhelming research that demonstrates a clear tie between increased profitability, increased market leadership, and more innovation with diverse executive leadership teams" "There is a business imperative to act, and also a moral imperative." [32:30]
  18. SVLG Is working on a pledge to improve diversity numbers in both public and private companies [35:56]
  19. Shareholder primacy vs stakeholder capitalism [43:44]: "What I would hope is that a business association like ours might be a proponent of tying social responsibility in every way, shape and form, and very strategically, to the business and to the bottom line."
  20. What's next for SVLG [46:40]: In terms of racial justice and equity: "It is about hiring, it's about funding, and it's about measuring results."
  21. His favorite books: [49:27]
    1. Endurance, by Alfred Lansing.
    2. To Sell is Human, by Daniel Pink.
    3. Bad Blood, by John Carreyrou.
    4. Total Leadership, by Stewart Friedman.
  22. His professional mentor: [51:23]
    1. Dianne Feinstein
  23. His favorite quotes: [52:27]
    1. "Luck is where preparation meets opportunity" (attributed to Roman philosopher Seneca)
    2. "You've got to get comfortable being uncomfortable in roles like this"
    3. "There is nothing more uncommon than common sense" (attributed to Frank Lloyd Wright)
  24. What is an unusual habit or an absurd thing that you love?
    1. Two Beyond Burgers a day!
  25. Which living person do you most admire? His Dad, who grew up in the segregated south.

Music/Soundtrack (found via Free Music Archive): Seeing The Future by Dexter Britain is licensed under a Attribution-Noncommercial-Share Alike 3.0 United States License