London - The European Commission moved one step closer on
Monday to forcing companies to increase the number of women on their boards,
with a consultation on imposed quotas that could prove divisive among some
member states and industry bodies.
EU Justice Commissioner Viviane Reding has kickstarted a
three-month debate that could result in legislative action, a year after she
called on companies to take voluntary steps to increase the number of women on
boards to 30% by 2015 and 40% by 2020.
“Personally, I am not a great fan of quotas,” said Reding. “However, I like the results they bring.”
At present, only 13.7% of board members at Europe’s large
listed firms are women.
With only 24 companies across Europe signing up to the
voluntary pledge in the past year, at the current rate of progress it would
take more than 40 years to reach its target, the commission said, explaining
the need for tougher action.
The commission will call on national governments, companies
and industry bodies to comment on what measures could be adopted to redress the
balance, with any decision on further action to be taken later in the year.
Any EU-wide legislation would require the backing of
governments representing two-thirds of the bloc’s population, which could prove
the biggest stumbling block.
Most national employment ministers spoke out against
legislation when Reding addressed them at a meeting of the EU’s employment and
social affairs council on February 17.
Only those countries that already have quotas - Austria, Belgium and Finland - signalled their backing.
Many member states prefer action at a national level.
Belgium, France, Italy, the Netherlands and Spain have adopted legislation that
introduces gender quotas for company boards.
In the UK, Prime Minister David Cameron said that while he
did not favour quotas, they might have to be imposed if companies could not
tackle the gender gap on their own.
The business community has also voiced concerns over any
action to force measures on companies.
The European Round Table of Industrialists, a forum for the
chairpersons and chief executives of major multinational companies, has warned that
big divergences among sectors and national traditions meant any measures should
remain voluntary.
But 75% of European citizens are in favour of
legislation to address gender imbalances in the boardroom, according to the
latest Eurobarometer survey published on Monday.
Gender-balanced companies have a 56% higher operating
profit when compared to male-only companies, a report by McKinsey shows.
“I believe it is high time that Europe breaks the glass ceiling that continues to bar female talent from getting to the top in Europe’s listed companies,” said Reding.