Britain objects to EU Boardroom Quotas
CBI Chief Policy Director
Yesterday (14th November 2012) the European Commission took action to break the glass ceiling that continues to bar female talent from top positions in Europe’s biggest companies by accepting proposed legislation with the aim of attaining a 40% female board-members in publicly listed companies by the year 2020. The proposal is expected to apply to around 5000 listed companies in the European Union. Although a legal directive, the move allows member states to set their own non-mandatory mechanisms to achieve the target. Britain, however, favours voluntary mechanisms rather than quotas even thought its own 25% target for female board members in FTSE companies by 2015, set by the Lord Davies review, looks unlikely to be met by these voluntary measures.
Responding to the European Commission's proposed Directive on improving the gender balance on the boards of Europe's listed companies, the Business Secretary, Vince Cable said: “The UK welcomes the Commission’s decision not to impose mandatory quotas for women on boards. We remain fully committed to increasing women’s representation in UK boardrooms, but along with like-minded Member States, we have consistently argued that measures are best considered at national level. So we are pleased the Commission has listened to the concerns raised.
“We believe that the UK’s business-led, self-regulatory model, as set out in the Davies Review, is the best approach for us. We will now consider the Commission’s proposal carefully and work with other Member States to ensure the final Directive supports our efforts to ensure we have diverse and effective boards.”
Katja Hall, The Confederation of British Industry Chief Policy Director, said: “Businesses will be relieved that the Commission has listened to their concerns. These new proposals rightly focus on the need to improve boardroom diversity, while allowing firms to recruit the best candidates from the widest possible talent pool. MEPs should get behind this approach.
“Increasing the number of women in boardrooms is important for businesses, who know that gender diversity brings greater creativity, higher performance and better customer insight. That is why firms are already taking action to increase the flow of women to the top, such as targeting mentoring schemes at women and offering flexible working.”
