Proposals demanding that a third of Europe’s bank board directors should be women are likely to be dropped following apparent opposition from Viviane Reding, the EU’s justice commissioner, who has been leading a debate over boardroom gender equality. Mark Spinner, partner at international law firm Eversheds, comments:
“Generally speaking, there is currently little widespread support for the introduction of quotas. The vast majority of directors and industry bodies are in favour of making sure that the correct individuals get the job because of their experience, qualifications and value that they bring to the job rather than as a reaction to an arbitrary diversity quota. Whilst most support diversity, it is felt that positive discrimination on the basis of gender, ethnicity or nationality, rather than by reference to a ‘fitness for purpose’ test would be wrong.
“Having said that, there is also a feeling that if companies/governing bodies do not get their house in order voluntarily then the regulators/legislators will bring in compulsory quotas in order to accelerate the pace at which appropriate levels of diversity are achieved.
“The real challenge for companies wishing to improve diversity on a voluntary basis is that the cards are currently stacked heavily against broadening the gene pool from within which new directors are selected. In most cases, the selection criteria used effectively restricts the talent pool from which to select to a small number of candidates who already have existing experience. Unless the selection criteria are changed so that additional weighting is given to different skills sets/abilities more readily associated with female candidates, the current situation will not change. Add to this the small selection pool, and there is no wonder that research shows that, at the current rate of change, it will take over 70 years to get to an acceptable level of diversity.
“In order to secure the services of talented female candidates it is also important that companies look outside the traditional talent pools from which directors are selected. By looking at the civil service, health and/or education sectors (all of which have a healthy number of very talented female executives), companies would find it much easier to find suitably qualified and available female candidates (as well as male candidates) from which to select.
“Quotas are not the answer but unless companies get to grips with the question of diversity it is likely that they will be applied.”
I would like to comment on:
“The vast majority of directors and industry bodies are in favour of making sure that the correct individuals get the job because of their experience, qualifications and value that they bring to the job rather than as a reaction to an arbitrary diversity quota.”
I interviewed 8 top women bankers (CEOs, Directors, etc.) as part of research into performance in FS, and whilst they described discriminatory behaviour, they were also unwilling to describe it as such. Paradoxes were also evident in that women are basically being duped into believing that their organisations are meritocratic, but generally at the last hurdle, it is men who are given the top jobs; men are trusted more. Organisational cultures were also found to be not favourable to women, with espoused values of ‘diversity’ and ‘work-life balance’, but not implemented. So quotes anyway are only part of the equation. It’s very complex, with the women themselves playing a part.
I also comment on:
“Quotas are not the answer but unless companies get to grips with the question of diversity it is likely that they will be applied.” The only way we can understand is to undertake research, and understand all of the issues that different elements and stakeholders play a part in. For example, HR departments, recruitment consultants. My research found that these stakeholders play a part in maintaining the status quo, ie. talking about ‘diversity’, whilst enacting something different.