César Duran article, Executive Search Consultant
It has taken 10 years since the presentation of
this measure in 2012 for it to have finally been approved by the European
Parliament on Tuesday,
November 22, 2022. The approved directive establishes that before the end of July
2026, in listed companies, at least 40% of the positions of non-executive
directors or 33% of the positions of executive directors, will have to be
occupied by members of the underrepresented gender.
The directive, which will not apply to SMEs
with fewer than 250 employees, will enter into force 20 days after its
publication in the Official Journal of the European Union, and Member States
will have two years to transpose the standard into their legal system. In addition,
Member States must establish effective sanctions for companies that do not
comply with the provisions of the Directive.
The Directive is adopted in a context in which
there is a clear lack of fairness in the business leadership. In 2021, EU data
showed that women held 30.6% of board seats, with a large difference in quotas
depending on the country. At the head was France, a pioneer in the introduction
of legal targets on gender quotas on boards of directors, with a percentage of
more than 45% of women in non-executive management positions. Far from these
figures we find countries such as Cyprus or Hungary, where the figure is below
10%. In this sense, the European
Institute for Gender Equality, after analysing the situation in different
countries, determined that the binding quotas established by law are one of the
most effective mechanisms to incorporate more women on boards of directors,
resulting in countries that have adopted these measures have notoriously higher
quotas compared to those that have adopted softer measures or have not taken
any action at all. To deepen the situation of Europe in terms of Diversity
and Inclusion, we invite you to
watch the Webinar: Diversity & Inclusion. Is Spain ahead or behind other European countries? in which from Saltor Talent we analyse, together with our Kennedy
Executive Search partners, the
situation of Spain in terms of Diversity and Inclusion with respect to our
European neighbours).
The purpose of this measure is to remove
obstacles in women's careers. In this line, one of the key points of the
directive stipulates that companies that do not meet the quotas must adjust
their selection processes so that they are "fair and transparent" and
so that they have "clear and neutral" criteria. In this sense, although merit should remain
the key and unavoidable criterion in selection processes, when a company does
not meet the quotas and has to choose between equally qualified candidates, it
will have to prioritize the candidate who belongs to the least represented
gender.
From Saltor Talent we advocate for equity and equal opportunities in selection
processes. To do this, in addition to informing our clients of gender quotas in
the business leaders of their sector, we offer talent solutions aligned with
the company's strategic priorities in terms of Diversity and Inclusion.