July 21, 2010
Businesses throughout Europe have been warned that unless they start appointing females to prominent board room roles the European Commission will do it for them.
Research published this month by headhunting firm Egon Zehnder found that women are still in the minority in UK boardrooms, making up only 12.6% of executive directors in the top 100 firms, up slightly from 12.2% last year.
In response, the EU is planning to introduce compulsory quotas which force companies to make 20% of boardroom executives female.
Viviane Reding, the EU Fundamental Rights Commissioner, has warned that unless more boardroom seats are filled by women by the end of 2011, she will use new powers under the Lisbon Treaty to impose "gender quotas".
Addressing the European Parliament this month, Ms Reding said: "Equality in decision-making is not yet a fact ... I do not rule out the possibility of putting forward legislation in this area."
Legislation would mean that major British companies would have just five years to double the numbers of senior women present on their boards.
Since coming to power, the coalition government has expressed a desire to improve female presence in leading jobs but has voiced concerns against “rigid quotas”.
British business organisations are also ready to oppose the quotas plus any EU or government interference in recruitment and promotion practices, with Matthew Fell, Director of Company Affairs for the Confederation of British Industry, claiming that a “wide talent pool” is the best way to “promote diversity in the boardroom”.
With the Equality Act ready for roll-out from October 1st, a commitment to greater equality in the workplace is already in place. But, if Ms Reding’s comments reach fruition, businesses across the UK could soon see increased dominance by presently marginalised females.
