HR Policy Global
News

BEERG Newsletter - EU: Law on women on boards moves closer

On Oct 17, 2022, the European Council gave its final go-ahead to EU rules to promote more balanced gender representation on the boards of European listed companies. The 'Women on Company Boards’ Directive stipulates that at least 40% of non-executive board positions in listed companies should be held by members of the under-represented sex by 2026.

The proposal for the Directive was first presented by the European Commission in 2012 with the aim of promoting gender balance in decision-making at the highest levels of corporate governance. However, the proposal was blocked by several member states on the grounds that such legislation should be made at a national level.

Research shows that on average 31.5% of board members and only 8% of board chairs are women. The Directive aims to introduce fair and transparent selection and appointment procedures, so that at least 40% of non-executive board positions, either members of supervisory boards or non-executive directors in a one-tier board, are occupied by the under-represented sex.  If member states choose to apply the new rules to both executive and non-executive directors, a target of at least 33% of all director positions applies. Small and middle-sized companies with fewer than 250 employees are excluded from the scope of the Directive.

Published on: November 9, 2022

Authors: Tom Hayes

Topics: Inclusion and Diversity, The UK and European Union

Tom Hayes

Director of European Union and Global Labor Affairs, HR Policy Association

Detailed Bio

Contact Tom Hayes LinkedIn

MORE NEWS STORIES

BEERG Newsletter - Due Diligence: Undercover at Boohoo
People and Culture

BEERG Newsletter - Due Diligence: Undercover at Boohoo

November 30, 2022 | News

Continue reading this content with the HR Policy Global Membership package