Companies will be forced to have at least 40% female board members under European Commission plans

Companies will be forced to ensure that at least 40 per cent of their board members are women under European Commission-backed plans to help women into top jobs.

The rules demand that companies give non-executive directorships to women, where there is no male candidate who is better qualified, until they reach a target of four in ten. More radical plans were softened by the commission, which rejected imposing a penalty for firms who fail to reach the quota. 

Companies will be forced to ensure at least four of ten board members are women under EC-backed plans

Companies will be forced to ensure at least four of ten board members are women under EC-backed plans. However, the draft law does envisage possible fines for companies that ignore the selection rules.

European Union justice commissioner Viviane Reding, who launched the proposal, said: ‘The Parliament has made the first cracks in the glass ceiling that continues to bar female talent from the top jobs.’

 The news rules do not help women aiming for top management roles, such as chief executive. They also exempt smaller companies and those that are not listed.

Only about 17 per cent of non-executive board members in the EU’s largest companies are women. 

In Britain, women hold 17.4 per cent of directorships, up from 12.5 per cent in 2010. Only four chief executives at FTSE 100 companies are women. If endorsed, the rules will take seven years to come into full force.

The European Commission rules demand that companies give non-executive directorships to women

The European Commission rules demand that companies give non-executive directorships to women, where there is no male candidate who is better qualified

 Countries, which are now required to sign off on the law, are divided on whether pan-European rules on positive discrimination are necessary. Britain and Germany have argued against mandatory quotas.

Men dominate boardrooms in the region and many women who have risen through company ranks resent quotas because they suggest that women have not been promoted on merit.

Only Norway, which is not a member of the bloc, has enforced a 40 per cent quota since 2009, although critics say this has been achieved in part thanks to a small number of women holding non-executive positions in multiple companies.

‘It is essential for listed companies to evolve so as to include highly skilled women in their decision-making processes,’ said Rodi Kratsa-Tsagaropoulou, a member of the parliament who is playing a central role in shaping the law.

Advertisements
This entry was posted in Culture, Education, Employability, Higher Education, Politics, Psychology, Women in Business and tagged , , , , . Bookmark the permalink.

One Response to Companies will be forced to have at least 40% female board members under European Commission plans

  1. Biz Psycho says:

    Reblogged this on SGandA and commented:
    See my earlier posts on this at http://tinyurl.com/oz8lszf

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s