Plans to introduce a mandatory quota for the number of women on boards at EU companies were dealt a severe blow yesterday (October 23rd) after lawyers raised concerns over the legal viability of the proposals.
Under the plans, put forward by Viviane Reding, the EU’s justice commissioner, publicly traded companies in the EU would have to ensure that at least 40 per cent of their board members were women by 2020.
With the aim of increasing the diversity of employment in the highest echelons of EU companies, the proposals would see any firm failing to meet the quota subject to possible sanctions and fines.
However, the introduction of a mandatory quota has been a highly divisive issue among the union’s 26 member nations, with many, including the UK, preferring voluntary targets and other means to encourage firms to create a better gender balance in the boardroom.
And following a long debate yesterday EU commissioners failed to agree on the details of the draft legislation after the European Commission’s legal service warned that a binding quota for women may be illegal under current EU treaties.
This meant that a potential vote on the issue, that would have taken place following the debate, was postponed.
Nevertheless, yesterday’s events do not necessarily spell the end of EU attempts to increase gender diversity in company boardrooms, with Jose Manuel Barroso, the commission president, asking Ms Reding to resubmit her proposals in mid-November.
“We’ve been fighting now for 100 years,” Ms Reding said. “One or two weeks now doesn’t make a difference.”
But it is likely that any future proposals will have to scrap the idea of introducing a mandatory quota.
Speaking to the Financial Times, an EU official said under the outlines of the new plan the 40 per cent quota would be an objective for companies to meet, not a legally binding obligation.
Workplace decisions should be based on ability, not gender. Introducing this quota essentially keeps sexism going, where decisions are based on what’s between someone’s legs, not their ears.
There isn’t equality yet, but it won’t be gained by forcing a quota on board structure. People need to be treated the same at every level, meaning they all get the same opportunities and are promoted based on ability.
Speaking as a female Board Director, I completely agree with David. Mandatory quotas would greatly harm the cause and devalue the achievements of those who will reach the Board room through proven ability. Equality means being afforded the same opportunities irrespective of gender, not having things handed to us on a plate, just because of our gender – male or female.
I disagree David. Waiting for this to happen voluntarily is not working. We need to see some role models at the top of organisations for the women coming through to believe that they can succeed in getting to the top. Too much bias still exists towards women in the workplace and too often up until now men have been promoted to the top because of their great networking skills and ability to influence the right people – something women tend to struggle with. So you say that promotion should be based on merit and not gender dont you realise that dosent happen now ? There may not be any quotas in place for men but I look around me and see too many average men being promoted because of the advantages their gender has afforded them throughout their career and the bias that exists throughout organisations preventing them getting to the top.
I would rather have an average woman on the board and be a great role model for younger women than more average men who just happen to play in the right golf clubs !
AMENDMENT !
I disagree David. Waiting for this to happen voluntarily is not working. We need to see some role models at the top of organisations for the women coming through to believe that they can succeed in getting to the top. Too much bias still exists towards women in the workplace and too often up until now men have been promoted to the top because of their great networking skills and ability to influence the right people – something women tend to struggle with. So you say that promotion should be based on merit and not gender dont you realise that dosent happen now ? There may not be any quotas in place for men but I look around me and see too many average men being promoted because of the advantages their gender has afforded them throughout their career and the bias that exists throughout organisations preventing women getting to the top.
I would rather have an average woman on the board and be a great role model for younger women than more average men who just happen to play in the right golf clubs !
In reply to Susan, yes, I do realise that isn’t what is happening just now (in many companies at least) – I said that in my original comment.
The role of a board is to ensure the company is run in the best way possible yes? If, as you say, men are better at certain things than women, and those certain things are what are required for a certain role, then why shouldn’t those who have the skills/ability get the role? Seems foolish for a company to not put the most capable people in the position of running it.
What you seem to be saying is that a company should have some women on the board just to encourage other women. That’s not the purpose of a board, nor would I imagine the women I know be encouraged to be like someone who was given a role because of her gender. What encourages people is equal treatment and reward for hard work. If that is done correctly (I’m not saying it *is*, I’m saying *if*) then that should cross all gender boundaries.