EU Directive to Strengthen Gender Equality on Corporate Boards

PWN Global welcomes the adoption by the EU of a general approach on an EU directive aiming to strengthen gender equality on corporate boards, aiming to improve the gender balance among non-executive directors of listed companies, and increasing the proportion of women in economic decision making positions. 

While progress towards more equality in this area has been made, it remains too slow and uneven across the EU Member States. The adoption of this general approach is an important step forward.

The new proposed directive encompasses comprehensive measures such as a quantitative target for the proportion of members of the under-represented sex on the boards of listed companies. The directive states that companies will have to take steps to reach, by 2027, the minimum target of having 40% of non-executive director positions held by members of the under-represented sex, or alternatively at least 33% to be women, if all board members are included.

Co-President of PWN Global, Virginia Otel commented on the directive:

"I welcome such a decision. It's been 10 years since the EU Directive was proposed by Vivienne Reading, the EU Justice Commissioner at that time.  Such an approach is not only related to social equity, but it is also a driving force for business performance. More diverse leadership teams mean diverse opinions, reduced group-thinking, hence, improved outcomes. There are various business arguments that stand for a balanced representation of women and men on corporate boards, such as improved financial performance, better quality of decision-making, improved corporate governance and ethics, better risk management, mirroring consumer spending behavior, a better use of the talent pool, enhanced corporate image and reputation. If progress in gender balance in corporate boards will be achieved by legislative action at this stage, I am confident that seeing the benefits of gender-balanced leadership, that advancement will occur naturally in the future. ”

In addition, EU Member States will have to ensure that companies give priority to candidates of the under-represented sex when choosing between candidates who are equally qualified in terms of suitability, competence and professional performance. 

Co-President of PWN Global,Nadine Castellani - Floderer states "We are very proud as a global community to be part of a European society and business community that stands up for gender equality and presents proposals to remedy the imbalance, that has been ongoing for way too long" .

It is extremely important and economically proven, that no major global challenge, whether political, economic, social, cultural, or environmental, can be tackled without the effective participation of women and men in decision -making.