Advertisment

European Union's Makes Historical Agreement On 40% Women Quota On Corporate Boards

It will be mandatory for the registered companies to have, by mid-2026, 40% women as a part of non-executive boards or 33% female participation in all board directors roles.

author-image
Avishka Tandon
Updated On
New Update
jobs summit, Confident Woman, woman sues colleague for hugging, women and success, women quota on corporate boards, male-focused networking, Lower Employment Rate Of Indian Urban Women, Women In Workforce, equal pay, COVID-19 Working Women, working from home
A historical decision on gender equality was taken by European Union regarding the quota for women on boards of large companies.
Advertisment

Despite the various changes that have been implemented in the modern world, women are still striving for equality in the workplace. From equal pay and leaves to opportunities and appraisal, there are many fields and sectors in the corporate world where being a woman seems like a disadvantage and this is a fact that discourages many women to join the corporate world. In such times, the agreement of the European Union to the 40% quota for women on boards of large companies in Europe seems like a big step toward gender equality.

European Union Agrees To Women Quota In Corporate Boards

The issue of gender equality in the corporate world was being discussed for almost a decade in Europe. It got an inspiring closure on June 7, 2022, when the EU agreed on providing a 40% quota for women on the boards of large companies. This will promote the inclusion of women in higher positions of large companies encouraging women's participation in corporate sector.

The proposal for the quota was stagnant for a long time but caught a new momentum in the form of support from France and Germany in 2022. This fast-tracked the decision making process and finally the EU and European Parliament came to a political agreement. Regarding the decision Ursula von der Leyen, the president of European Commission, reportedly said, "Diversity is not only a matter of fairness. It also drives growth and innovation. The business case for having more women in leadership is clear." She acknowledged that there are many worthy females in the corporate world who deserve an opportunity.

The new agreement will be applicable to all the corporate industries of the 27 member states of the EU. It will be mandatory for the registered companies to have, by mid-2026, 40% women as a part of non-executive boards or 33% female participation in all board directors roles. There will be provision of fines on companies that fail to maintain the minimum women participation on boards and unlawful rejection of female candidates for director roles.


Suggested Reading: Mithali Raj Retires: The Cricketer Who Made Us Root For Women In Blue

gender equality
Advertisment