EU countries on Monday approved a regulation that will have positive effects “at all levels of the economy”, as Czech Labor Minister Marian Jurecka put it. After years of blockades, it was possible to agree quotas for women on the boards of directors of listed companies.
In concrete terms, states should be able to choose between two models from 2026. According to a statement from the Czech presidency of the Council, at least 40 percent of the members of the supervisory board must be women by then. Or: “If member states choose to apply the new rules to both executive and non-executive directors, the target would be 33 percent of all directorships by 2026.”
The project is gender neutral. If there were significantly more women than men on a corresponding committee, men would also benefit from the regulation. The European Parliament must also formally agree to the agreement again, which is considered a formality.
Merkel’s government blocked for years
The change of government in Germany was also decisive for the agreement at EU level. Under ex-Chancellor Angela Merkel (CDU), Germany still stood in the way of an agreement. The European Commission proposed the new rules about ten years ago.
The agreement does not bring anything new for Austrian companies. Because in Germany, since 2017 there has been a mandatory quota of at least 30 percent women on the supervisory boards of large and listed companies. According to the Frauen.Management.Repport of the Chamber of Labor (AK), published early this year, the proportion of women on the boards of directors of listed companies subject to quotas has risen from 22.4 to 35.1 percent since 2018. For companies that have no obligation, the share was only 18 percent in 2021. In state-related companies, the proportion of female directors was almost 47 percent. However, there is also a legal quota of 50 percent.
Greens for legal quota for women
In contrast, there are still few women on the boards of directors of listed companies. Here the share of women was eight percent, in the case of the 20 companies in the leading index ATX only 6.9 percent. Nearly every fifth listed company has no women on the board of directors at all. The Greens are therefore arguing for a legal women’s quota of 30 percent in the boardrooms of listed companies. Company spokeswoman Elisabeth Götze emphasized in an interview with “Zeit im Bild” in early October that mixed teams have shown that they are “innovators, more crisis-resistant and the employees happier”. This subsequently had a positive effect on the company’s economic performance.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
