BRUSSELS (Reuters) – Member states of the European Union (EU) have reached an agreement in principle that should improve the gender balance among directors of listed companies.
This project should encourage companies to appoint or elect women to a minimum of 40% of non-executive director positions or 33% of all director positions by 2027.
The proposed legislation would apply to companies that are listed on the stock exchange or have at least 250 employees. According to estimates, it could concern some 2,300 companies in the block of 450 million inhabitants.
Beyond requiring companies to put in place clear policies aimed at closing the gap, the directive does not, however, propose strict sanctions in the event of non-compliance with the objectives.
The Ministers of Employment and Social Affairs of the 27 Member States have given their agreement in principle to the proposal, which allows them to launch discussions with the European Parliament. No date has yet been set for these.
“In October 2021, only 30.6% of board members and just 8.5% of board chairs were women in the European Union. The gap between member states is significant,” said ministers in a statement.
This new push for quotas comes after studies showed that the COVID-19 pandemic has disproportionately affected women, from employment to domestic violence, widening gender inequalities in the EU.
Eight EU countries, including France, already apply quotas at national level and could be exempted from European regulations.
Ten Member States have provisions in place which are lower than the proposed quotas. The remaining nine have taken no substantial action so far. Each country would be allowed to choose between the 33% and 40% target.
“We want to break the glass ceiling that prevents talented women from getting on board,” European Commission President Ursula von der Leyen said on Twitter on Monday.
“It took ten years, but we got there,” French President Emmanuel Macron said on social media.
“It’s a big step forward for equality.”
(Report Gabriela Baczynska; French version Elena Vardon, edited by Jean-Michel Bélot)
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