The push for gender balance and female representation on company boards in Europe is making the headlines, and momentum is gaining around the issue. Following years of marginal and insignificant progress, the EU Vice-President and Commissioner for Justice Fundamental Rights and Citizenship, Viviane Reding, has stepped in to propose a directive designed to put career progression of both men and women on par, and to do away with the far from proverbial glass ceiling which exists in too many organizations. The figures speak loudly, clearing indicating which gender dominates – women make up 17% of non-executive boards and 10% of executive boards.
The proposed directive has been established to pave the way for the less represented gender to take top management positions, with the objective being to reach 40% of non-executive directors on the boards of big listed companies by 2020.
Obviously, the qualifications and merits of candidates remain the key criteria for board positions. The directive demands a minimum harmonization of corporate governance requirements, as appointment decisions will have to be based on objective assessment. Imperative sanctions will be taken against companies not following the legal requirements for quotas. The sanctions will be determined by Member States themselves. The minimum objective of 40% is to be attained by publicly listed companies by 2020, and by 2018 by public undertakings.
See full Article: http://forumblog.org/2013/03/ensuring-gender-balance-in-europe/
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