Are quotas the answer to more women on Boards?
It is a fact that women are under-represented in leading business positions and on Boards of Directors. Many governments around the world are establishing quotas to obtain greater gender diversity on Boards and fill the gap. The boardroom quota drive was initiated by Norway in 2003 and has been followed by many other European countries such as the UK, Germany and France, all having their own goals. In 2012, the matter was brought to the European Union which decided to take action and break the “glass ceiling” by proposing a legislation aiming to attain 40% of women in Board seats by 2020.
As a result, from 2012 to June 2013, the amount of female directors in companies of the CAC 40 has risen from 22% to 28%*. This in an encouraging raise for gender equality but the establishment of quotas is an ongoing debate in corporate governance with interesting arguments on both sides and both genders. Below we will list some of the pros and cons of such quotas.
* L’Observatoire Ethics & Boards
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