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BackThis week, the EU Parliament voted on a report on women in economic leadership roles. Currently the share of women in the highest decision-making bodies of the largest listed companies only makes up 10.9 %. In order to change this, the European Parliament (EP) has asked the EU Commission to prepare a proposal on a legal quota for women. Spain, France, The Netherlands and since last week also Belgium and Brussels have already implemented such a quota.
Commissioner Reding wants to give companies a last chance, before legally prescribed quotas are introduced
Both the responsible EU Commissioner Viviane Reding as well as the EU Parliament are justified in referring to countless studies, which imply that there is a connection between the improved economic and financial results of companies and the presence of women in the decision-making bodies of these companies. They also say that a significant representation of women in leadership roles has proven to have contributed to increasing both performance and economic competitiveness. However, fact is that women are more than underrepresented in boardrooms. Their annual share is growing just about half a percentage point per year. This would mean that it would take another fifty years until the share of both genders in corporate management bodies was at least 40 %. The EU Commission is no longer willing to stand idly by and announced that she would propose a legislative regulation in 2012, should listed companies fail to increase the share of women in their decision-making bodies to 30 % by voluntary measures by 2015 and to 40 % by way of self-regulation by 2020 within the next 12 months.
Equal treatment of women and men is one of the basic principles of the European Union
In its report, the EP also states that it should be one of the priority objectives of the Union to enable competent and qualified women to gain access to positions, which they are still finding difficult to reach. This can only be achieved if the continuous obstacles and inequalities between the genders, which prevent women from advancing professionally, are removed. Another demand is that measures are taken and agreements are made to provide high-quality and affordable services. For example, childcare and other compensatory measures, which support working women and men in reconciling their family and professional life. In addition, the Commission and the Member States are urged to create improvements concerning access to childcare facilities. The EP finally states that for example in Norway, which has a legal quota of a least 40 % for the management/supervisory boards of listed companies, the resistance had initially been great; however, that in the end the law has led to tangible results. Now the ball is in the corner of the European Commission - it alone has the right to propose EU laws - to reinforce the demand of the EP for a stronger presence of women in boards/supervisory boards, should the requested voluntary commitments not bring the desired success.
Further information:
Press release of the European Parliaments
Report of the EP on women and business leadership
Both the responsible EU Commissioner Viviane Reding as well as the EU Parliament are justified in referring to countless studies, which imply that there is a connection between the improved economic and financial results of companies and the presence of women in the decision-making bodies of these companies. They also say that a significant representation of women in leadership roles has proven to have contributed to increasing both performance and economic competitiveness. However, fact is that women are more than underrepresented in boardrooms. Their annual share is growing just about half a percentage point per year. This would mean that it would take another fifty years until the share of both genders in corporate management bodies was at least 40 %. The EU Commission is no longer willing to stand idly by and announced that she would propose a legislative regulation in 2012, should listed companies fail to increase the share of women in their decision-making bodies to 30 % by voluntary measures by 2015 and to 40 % by way of self-regulation by 2020 within the next 12 months.
Equal treatment of women and men is one of the basic principles of the European Union
In its report, the EP also states that it should be one of the priority objectives of the Union to enable competent and qualified women to gain access to positions, which they are still finding difficult to reach. This can only be achieved if the continuous obstacles and inequalities between the genders, which prevent women from advancing professionally, are removed. Another demand is that measures are taken and agreements are made to provide high-quality and affordable services. For example, childcare and other compensatory measures, which support working women and men in reconciling their family and professional life. In addition, the Commission and the Member States are urged to create improvements concerning access to childcare facilities. The EP finally states that for example in Norway, which has a legal quota of a least 40 % for the management/supervisory boards of listed companies, the resistance had initially been great; however, that in the end the law has led to tangible results. Now the ball is in the corner of the European Commission - it alone has the right to propose EU laws - to reinforce the demand of the EP for a stronger presence of women in boards/supervisory boards, should the requested voluntary commitments not bring the desired success.
Further information:
Press release of the European Parliaments
Report of the EP on women and business leadership