Ferma’s Ladies in Risk Management lunch aims to give women the chance to debate the EC directive on 40 female board membership, as well as raise awareness of the glass ceiling
European commissioner for justice Viviane Reding’s campaign to get more women into the boardroom by 2020 has been the topic of fierce debate since the proposal was first published in 2012. The question on recruiters’ lips is: to quota or not to quota?
The European Commission’s draft directive on female board representation targets only stock exchange-listed companies with supervisory boards that comprise, in Reding’s words, “less than 40% of the under-represented gender”. The aim is for women to make up at least 30% of boardroom members by 2015, rising to 40% by 2020.
Ahead of the game
Several companies are taking action early – and not just in the boardroom. Deutsche Telekom is a good example. It aims to have 30% of its worldwide executive positions filled by women by the end of 2015. It is the first DAX-listed company to introduce its own gender quotas.
While this may appear a positive step toward fairer representation, some governance experts fear the quota-driven approach espoused by Reding and other campaigners could put too much pressure on companies to rush women onto the board.
Partner at City firm Faegre Baker Daniels Melanie Wadsworth, says: “I hope these quotas don’t become mandatory in Europe. There is a risk that we end up promoting women who are not ready.”
Wadsworth fears the gender campaign will in fact undermine the boardroom. Diversity should not be about male or female, she says, but about the correct balance of skills.
Take part in the debate
The female quota debate will form part of the discussion taking place at Ferma’s Ladies in Risk Management lunch on 1 October. DLA Piper senior elected board member Janet Legrand will look at the idea of striking the right balance between the necessity for fair representation of women on boards and the need for competence.
Sanna Suvanto-Harsaae, who is a board member of more than eight Nordic businesses including SAS AB, Babysam and the multinational retailer Clas Ohlson, and chairman of four, will provide an overview of existing quota systems or similar approaches in Norway, Finland, Sweden and Denmark and explore the challenges facing women today.
Both will provide personal anecdotes about their journey to senior positions. “The Ladies in Risk Management lunch will form the basis of some interesting debate, but will also provide the opportunity to hear first hand about the challenges and successes of two board members and their journey to board level,” says Ferma board member Helle Friberg.
“There is still a bit of a glass ceiling and what we’re trying to do as part of this lunch is raise awareness.”
EU members take a stand for and against
Several European countries have introduced variations on the gender theme:
Under France’s Copé-Zimmerman law on gender balance, listed companies with more than 500 employees and a turnover of €50m must have a 40% female representation in the boardroom by 2016. If not, no director fees will be paid until the situation is remedied.
Italy and Belgium are planning to penalise offending boardrooms.
In Spain, sanctions will not be applied, but non-compliant companies can probably forget about applying for lucrative public contracts
Germany will have no official sanctions or even quotas. The government officially supports the concept of more women in the boardroom, but “is reluctant to introduce strict quota requirements in a democratic free economy”. The business community lobbied successfully against them.
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