Debate: Gender balance among non-executive directors of companies listed on stock exchanges
Date: TUESDAY, 22 NOVEMBER 2022
Speaker: Lara Wolters
Country: Italy
Language: EN

And the reason for their underrepresentation in the boardroom is not a lack of merit or talent; it’s structural problems that disadvantage women in their careers, particularly when they want to take on leadership roles. Spoiler alert: the law we have before us today won’t solve all of that. For that, we need quality and affordable childcare. We need better paternity leave. We need part-time work to become accepted for men. And let us not forget that most women work not at the top, but in jobs that are hugely undervalued and underpaid. But what we are doing today will be a step in the right direction. The law we are signing tomorrow aims at getting at least 40% of board positions of listed companies filled by women through better recruitment procedures with clearer criteria, more transparency and broader candidate pools. Member States have until 2026 to achieve gender-balanced boards with measures put in place to make sure that they do. And I think we all stand to win. Companies stand to benefit from looking more like the consumers they serve. It’s unsurprising that research has shown that companies with more diverse teams are more creative, more innovative and have better problem-solving abilities. Diverse leadership, in turn, can lead to more productivity and more successful business operations. And yet, at the moment, only 3 in 10 board members in large EU corporations are women. Zooming in on Hungary, Estonia and Cyprus, that is 1 in 10. Those boardrooms are not a good reflection of society, especially when we think of the fact that these companies are heavy hitters that take decisions that can impact all of us.  As you may know, a lot of my work in this House is about how we make sure that companies don’t think only about their bottom line, but also about their place in society. In 2022, we expect more from companies, and that goes from gender equality to respect for human rights, climate change and the environment. That’s why I sincerely believe that we all stand to benefit from this: employees, consumers, citizens and, yes, companies themselves.  If a Member State recently introduced legislation, they still have to meet the targets we’re talking about today. Otherwise, they are subject to this law. And that means that either way, all 27 Member States will see more women in their boardrooms in the near future. That’s a big deal for Europe, and certainly for the 18 countries in our EU without effective legislation.  Now, of course there are those who will say quotas won’t work and that this will lead to appointments based on gender rather than merit. I think it’s about time that we left that argument where it belongs – in the previous century. We’ve tried asking nicely. We’ve tried waiting for the old boys’ networks to die out and to no avail.  Quotas are a blunt instrument, yes. But where there’s a lack of will, you need a law. This law is a significant achievement and, frankly, a victory for all of those who have campaigned for it since 2012. And to them, I wish to pay tribute. Most of all, though, I think today is a victory for girls, who, as we very well know, cannot be who they cannot see.