The European Union (EU) has reached an agreement to require companies listed on European stock exchanges to have at least 40% female representation in board positions by 2026. The European Commission first proposed the legislation in 2012, and formal adoption still requires approval from the European Parliament and the 27 member states, which must occur by the end of this year.
Today the female presence on the boards of the EU’s largest publicly traded companies is 30.6%. On the other hand, women represent only 8.5% of the group, according to a statement released by the bloc’s authorities.
If member states extend legislation for executive and board positions, the target for female participation in these positions would be 33 percent. Under the new legislation, listed companies will have to report once a year on the gender representation on their boards and, if the goals are not met, must report how they plan to reach the target.
Currently, only 9 of the 27 member states have national legislation on gender equality on boards.
Source: Valor Econômico