Germany gives nod to female boardroom quota

The Hague – The German coalition government has decided to implement affirmative action for women in big companies’ board of directors. From 2016 women should form at least 30% of the members of boards of directors.

This was agreed this week after months of wrangling between the coalition partners, the centre-right Christian Democrats and centre-left Social Democrats.

The policy will be applied above all to the biggest 108 stock market-quoted companies. If they cannot find suitable women for the positions, these must be left vacant, it was decided.

An additional 3 500 smaller companies will be “encouraged” to do the same, but for the time being there will be no sanctions for non-compliance.

Manuela Schwesig, the Social Democrat minister responsible for the implementation of the measure, has drafted a bill which will be debated by the Bundestag, the German parliament. With its big majority in both houses, there is no possibility of it being voted down.

Part of the compromise between the coalition partners was that this measure will apply only to boards of directors, not to management.

A recent study showed that 63% of directors in Germany are men above 60 years of age. Women comprised only 12%.

This means that about 170 male directors will now have to make place for women.

The wrangling was accompanied by a severe clash between Schwesig and the Christian Democratic Union chairperson Volker Kauder. At the announcement of the bill, Kauder shouted from the front row, where he was sitting, that his party did not share the government’s admiration for Schwesig.

When Kauder rose to speak a few minutes later, Schwesig, a stunningly beautiful and intelligent woman (40), left the hall. He was later accused of being “macho”.

The German financial newspaper Handelsblatt called the bill “a first step”. The expectation is that affirmative action will in time be applied to management positions as well.