We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedPeople Management

EC clears plan for 40% female non-exec directors

Plan needs to be ratified by EU member states

Article comments

The European Commission (EC) has cleared proposals aimed at having at least 40 percent of women non-executive directors on the boards of listed companies in the common market by 2020, a spokesperson told CFOWorld on Wednesday.

The proposal, considered a brainchild of EC Justice Commissioner Viviane Reding, will not apply to any company within the common market which employs less than 250 people, or to companies whose shares are not traded on a stock exchange recognised within the European Union.

Commissioner Reding delayed the launch of the policy in October, after the EC legal team said such a quota might not be enforceable. While legal hurdles persist, the EC spokesperson described the plan as a step in the right direction and “groundbreaking.”

However, she added a caveat that the plans needed to be approved by the European Parliament and the Council of Ministers. Pending approval, the enforcement would not be via the EC.

Rather, member states such as the UK, should they approve, would then have to incorporate the directive into domestic employment laws. They would then have to employ their own sanctions and penalties for companies which do not fall into line by 2020.

There has been opposition to the proposals from many member states, including the UK. In response the EC’s move, UK business secretary Vince Cable said, “The UK welcomes the Commission's decision not to impose mandatory quotas for women on boards.”

"We remain fully committed to increasing women's representation in UK boardrooms, but along with like-minded member states, we have consistently argued that measures are best considered at national level," he concluded.


Recommended Articles


EC clears plan for 40% female non-exec directors
People Management

Is the CFO still the sole sacrifical lamb when a company struggles?

Is the CFO still the sole sacrifical lamb when a company struggles?

Tesco's announcement today that boss Philip Clarke is to leave proves that's no longer the casemore ..

Tesco’s Philip Clarke exits after another profit warning

The UK’s largest retailer appoints outsider Dave Lewis, president of personal care at Unilevermore ..

Unemployment falls to near six-year low of 2.12 million

There were 30.64 million people in work in 3 months to May - a leap of 254,000 compared to previous quartermore ..

HP staff in favour of industrial action on jobs

Failure to cooperate with ‘knowledge transfer' may affect DWP and MoJ contractsmore ..

Ten tactics to unleash the potential of Generation Y in finance

Most CFOs are Baby Boomers or Generation X-ers – the difference in mindset is hugemore ..

What's the role of the finance chief in a takeover bid?

With Pfizer's possible takeover of Astrazeneca in the spotlight we take a look at how pivotal the CFO is in such a dealmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *