Here they come

5 September 2012 By Christine Murray

The EU is mulling a 40 pct mandatory quota for female directors. Success will depend on getting the regulation right. Tough sanctions are needed to force compliance, but the rules should articulate a longer-term plan. Hopefully mere threats will be enough to modify behaviour.

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Europe’s listed companies will be forced to have a minimum of 40 percent women on non-executive director boards by 2020 under a European Commission draft law seen by the Financial Times. Companies larger than 250 employees or with greater than 50 million euros in annual revenue must comply or face administrative fines or be barred from state aid and contracts.
EU data shows that in January, only 13.7 percent of board positions in large listed companies were held by women.
The UK has launched a campaign in Brussels against the reforms, the FT said.
(An earlier version of this story incorrectly referred to “companies with over 50 billion euros of revenue” in paragraph 3)

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