Debate: Women in decision making on company boards, including the state of play on the directive on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures
Date: MONDAY, 5 OCTOBER 2020
Speaker: Helena Dalli
Language: EN

Progress regarding female representation on corporate boards and business leadership positions remains very slow and uneven across the EU. The figures from the Gender Equality Index of the European Institute for Gender Equality are of concern. They clearly show that we need urgent action. On average, only around 28% of board members of the largest publicly-listed companies registered in the EU are women, and women still only account for 8% of CEOs. These are not the numbers of a gender-equal Europe, nor does it reflect the talent available. Beyond being a matter of equality or lack thereof, this is a clear waste of human capital. Evidence shows that a broad range of talents and skills in the boardroom contributes to better decisions, better corporate governance, and public trust in business. This is what drives economic growth. Despite their capabilities and educational achievements, women continue to struggle against long-held and systemic entry barriers into corporate boards and leadership positions. We need to ask why. One major obstacle is the lack of transparency in the selection process and qualification criteria, and this is what the Commission’s proposal aims to address. I must be clear again on this point. The Commission is not imposing binding gender quotas. What the proposal does instead is to require the establishment of transparent procedures for the selection of board positions in the largest EU-listed companies to address the gender imbalance. Such an approach places qualification and merit of candidates as the main criterion for board membership. With this approach, which places qualification and merit upfront, it is hard to understand why we are not managing to adopt this directive. I regret to say that, after 8 years, we still are waiting for a general approach in Council. At the same time, this Commission has put equality high on the political agenda. The Commission is striving to lead by example. For the first time in its history we are closest to a gender-balanced college. The Commission has also just adopted new measures to reinforce gender equality at all levels of management within the Commission. The objective to unblock the negotiations is one of my core tasks. It is also a priority. It is also a priority action in the gender equality strategy for 2020-25, which we adopted earlier this year. The Commission has been engaged in discussions with opponents and supporters of the initiative. Our message is clear: the adoption of the directive would represent a major step forward in our fight for gender equality in Europe. It would send a strong, clear message to the EU citizens and beyond: the European economy makes the best use of all its talent. Some voices try to depict this proposal as a burden on companies. Experience shows that it is not. On the contrary, it is a tool bringing concrete benefits to European and national economies. I count on your continued support on this file and to make Europe a continent where women have the same opportunities as men to reach their full potential.