Companies listed on stock exchanges in the Member States of the European Union will be obliged to have at least 40 percent women as non-executive directors by 2020, according to a report to be voted on during the November plenary session of the European Parliament. In the debate on Tuesday, Hungarian MEP Zita Gurmai said that the proposed legislation can contribute to breaking the glass ceiling that women have been facing for so long.
Companies covered by the proposed legislation will be obliged to adapt selection procedures and other measures in order to achieve the 40-percent target by the end of the decade.
’Let’s be honest: we have tried the self-regulation by the market for a very long time and it has failed. Women are still very-much underrepresented in decision-making and they keep facing multiple discriminations. Without a clear and binding legislation this is not going to change anytime soon. Having more women in company boards is therefore not only an issue of democratic representation; it is also an issue of using all talent on the labour market. It is not only synonym of fairer economy but also of smart business,’ concluded Ms Gurmai.
The EP is scheduled to vote on Wednesday on the report.