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BackLast year, when EU Commissioner Reding presented a proposal on introducing a, albight not binding quota for women on supervisory boards of companies listed on stock exchanges, nobody was under the illusion that this would pave the way for a solution. In the past, voices in the European Parliament had time and again emphatically demanded a legal quota. Now one cannot help thinking that the European Parliament has got cold feet or that many MEPs are showing their true colours when push comes to shove. This week’s negotiations on the proposal have confirmed this impression.
No sanctions for companies not achieving the 40 % quota!
The proposal by the EU Commission sounded promising as the share of women as non-executive directors of companies/supervisory board members in large listed companies was supposed to be increased to 40 %. In cases, where the 40 % target would not have been achieved by 2018 (deadline for wholly or partially public sector companies) resp. by 2020 (deadline for private listed companies), Member States would have had to ensure that companies continue their efforts after this deadline to guarantee a balanced representation of both genders. So far, so good. However, no real sanctions will be implemented should the quota of 40 % not be achieved. However, that’s what gives it that extra something, as shown by many Member States that have introduced a quota! According to the EU Commission, sanctions will only be imposed if there has been no more transparent decision-making process concerning the appointment of new supervisory boards or if no report on measures to achieve the quota has been prepared, whereby the latter shall only take up half to maximum one page in the annual report! Anybody who had pinned his or her hopes on the European Parliament was unfortunately brought back down to earth. The proposal by the EU Commission was only slightly changed, for example with regard to the quota regulation to also include small and medium-sized enterprises, if they are listed on the stock exchange. The European Parliament would have had it in its power to go beyond the Commission proposal; however, it became quickly clear that there would be no majority to back this.
Some MEPs completely reject the proposal
It is well-known that the European Parliament is home to a wide variety of opinions. What is, however, interesting is the fact that MEPs from the same faction oppose their own Conservative co-rapporteur with the intention on using their amendments to derail the entire proposal. Now no efforts are being spared behind the scenes to find a compromise, which can be passed with the Council and which is acceptable to all. However, it is doubtful whether this is enough to improve the situation and it very much looks as if after all these years of fighting for the cause, a solution will be reached, which is inadequate from the point of view of the Chamber of Labour, not least because of the balance of power of the political parties in European Parliament and Council. However, the fight is not over yet!
Further information:
Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures
Amendments on the draft report on the proposal for a directive on gender balance among non-executive directors of companies listed on stock exchanges
The proposal by the EU Commission sounded promising as the share of women as non-executive directors of companies/supervisory board members in large listed companies was supposed to be increased to 40 %. In cases, where the 40 % target would not have been achieved by 2018 (deadline for wholly or partially public sector companies) resp. by 2020 (deadline for private listed companies), Member States would have had to ensure that companies continue their efforts after this deadline to guarantee a balanced representation of both genders. So far, so good. However, no real sanctions will be implemented should the quota of 40 % not be achieved. However, that’s what gives it that extra something, as shown by many Member States that have introduced a quota! According to the EU Commission, sanctions will only be imposed if there has been no more transparent decision-making process concerning the appointment of new supervisory boards or if no report on measures to achieve the quota has been prepared, whereby the latter shall only take up half to maximum one page in the annual report! Anybody who had pinned his or her hopes on the European Parliament was unfortunately brought back down to earth. The proposal by the EU Commission was only slightly changed, for example with regard to the quota regulation to also include small and medium-sized enterprises, if they are listed on the stock exchange. The European Parliament would have had it in its power to go beyond the Commission proposal; however, it became quickly clear that there would be no majority to back this.
Some MEPs completely reject the proposal
It is well-known that the European Parliament is home to a wide variety of opinions. What is, however, interesting is the fact that MEPs from the same faction oppose their own Conservative co-rapporteur with the intention on using their amendments to derail the entire proposal. Now no efforts are being spared behind the scenes to find a compromise, which can be passed with the Council and which is acceptable to all. However, it is doubtful whether this is enough to improve the situation and it very much looks as if after all these years of fighting for the cause, a solution will be reached, which is inadequate from the point of view of the Chamber of Labour, not least because of the balance of power of the political parties in European Parliament and Council. However, the fight is not over yet!
Further information:
Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures
Amendments on the draft report on the proposal for a directive on gender balance among non-executive directors of companies listed on stock exchanges