Women on Board - The state of art of quotas regulation in Europe

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Women on Board - The state of art of quotas regulation in Europe

  1. 1. Women  on  Board  The  state  of  art  of  quotas  regula4on   in  Europe     Isabella  Lenarduzzi  
  2. 2. JUMP        www.jump.eu.com  •  JUMP  offers  women  prac4cal  tools  to  help   them  realise  their  professional  and  personal   aspira4ons  •  JUMP  supports  companies  and  organisa4ons   that  wish  to  promote  beEer  gender  diversity   within  their  management.  
  3. 3. The  gender  Diversity  Ecosystem  by  McKinsey  and  the  correspondent  JUMP  ini4a4ves    
  4. 4. European  figures  S4ll  a  long  way  to  go!  
  5. 5.              Women  in  execu+ve  commi-ees  (2011)  
  6. 6. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  7. 7. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  8. 8. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  9. 9. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  10. 10. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  11. 11. Women in economic decision-making in the EU: Progress reportEuropean Commission, 2010 Women  on  boards  
  12. 12. Ac4ons  promoted  by   governments  “The  quota  law  has  opened  boardrooms  to  an  extent  that  we’ve  never  seen  before,”    Mari  Teigen,  research  director,  Norwegian  Ins4tute  for  Social  Research        
  13. 13. Overview  of  measures  in  place  
  14. 14. Norway  • Norway  was  the  first  country  in  the  world  to  implement  board  quotas    •   Numbers  of  women  on  corporate  boards  have  risen  from  only  6%  in  2002  to  over  44%  today.    •   "By  not  u(lising  the  full  talent  pool  I  knew  Norway  as  a  na(on  was  missing  out.  My  ambi(on  as  a  Minister  was  to  force  companies  to  rethink  their  board  recrui:ng  prac:ces.  I  believe  we  succeeded,"  Ansgar  Gabrielsen  (Former  Minister  of  Trade)    • “We  have  invested  billions  educa(ng  our  daughters  as  much  as  our  sons,”  Gabrielsen  said.  “Their  ongoing  exclusion  from  corporate  boards,  which  are  an  important  part  of  our  society  just  doesn’t  make  economic  sense”  
  15. 15. Norway,  the  law  •  The  law  demands  that  public  shareholder-­‐owned   corpora4ons  (called  ASAs  in  Norway)  must  have   an  average  of  at  least  40%  women  and  40%  men   on  their  boards  or  face  dissolu+on.    •  The  law  came  into  force  in  2008  and  related  to   7,000  seats  on  boards.  The  compulsory   percentage  of  gender  diversity  varies  according   to  the  number  of  seats  concerned:  1  in  2  or  3   seats;  38%  of  8  seats;  and  40%  of  more  than  8   seats.  
  16. 16. Norway,  the  results  •  Posi+on:  Only  3%  of  chairs  are  held  by  women.  •  Age:  Women  are  younger  than  men  on  boards.  The  majority  are   less  than  50.  The  older  men  on  boards  were  not  replaced  by   women  but  when  recrui4ng  new  members  they  recruted  women.    •  Educa+on:  Women  tend  to  be  beEer  educated  than  men.  There   are  fewer  of  them  with  science  and  technology  degrees  but  more   with  law  degrees.    •  Experience:  More  women  than  men  are  managers  in  companies  or   come  from  academia  but  more  men  than  women  are  business   owners.  •  Recruitment:  Women  were  recruited  in  the  same  manner  as  men,   mostly  through  professional  networks.  The  phenomena  of  the   concentra4on  of  power  and  the  so-­‐called  “golden  skirts”,  which   defines  a  number  of  women  who  serve  on  several  different  boards   at  the  same  4me,  is  a  very  common  idea.  The  research  proved  that   golden  skirts  was  a  men’s  wear  with  62%  holding  only  one  board   posi4on  instead  of  79%  of  Women!  
  17. 17. Norway,  the  results  •  The  more  visible  and  skilled  the  women  the  more   advantages  they  had.  For  example,  as  the  research   suggests,  these  women  always  choose  the  biggest   companies.  •  Sixty  percent  of  male  board  members  said  there  had   been  no  major  changes  to  board  opera+ons  since  the   law  took  effect  but  there  were  some  improvements:   “more  discussions”  and  “new  perspec+ves”.  •  Several  top  Norwegian  business  leaders  said  they  were   “opposed  in  principle”  to  quotas  and  s4ll  are,  but   believed  the  law  has  been  effec4ve.  Fears  of  not  finding   enough  qualified  women  to  fill  board  seats  proved   unfounded.  “I’m  in  principle  against  quotas,”  said  Harald   Norvik,  chairman  of  Telenor  and  former  CEO  of  Statoil.   “But  I’m  happy  with  the  result,”  he  added.  
  18. 18. Norway,  the  results  Adverse  consequences  •  Since  the  law  on  quota,  the  number  of  public-­‐listed   companies  has  fallen.  The  research  highlighted  that   33%  of  companies  choosing  not  to  list  on  the  stock   exchange  did  so  to  evade  the  quota  regula4on.  •  Since  the  law  was  enforced,  there  has  been  no  further   debate  on  gender  diversity  in  Norway  but  the  balance   is  s4ll  far  off:  the  quota  law  did  not  change  the  number   of  women  CEOs  (2%)  or  their  presence  in  the  Execu4ve   CommiEee  (10%).  The  private  limited  companies  that   didn’t  have  to  comply  with  the  law  saw  an  increase  of   women  on  their  boards  from  15%  in  2004  to  17%  in   2009!    
  19. 19. France,  the  law  •  Law  adopted  in  January  2011  •  2014    to  get  to  20%  and  2018    to  get  to   40%  of  women  •  To  be  applied  to  large  listed  companies   with  more  than  500  employees  and   more  than  50  million  €  revenues  •  Penalty:  no  validity  of  board  decisions  •  First  results  :  from  8%  in  2008  to  22%  in   2012  
  20. 20. Belgium,  the  law  • Law  adopted  30  June  2011  • 30%  to  be  reached  for  each  sex  in  …    -­‐  One  year  for  public  owned          companies  -­‐  Six  years  for  listed  companies  -­‐  Eight  years  for  SMEs  • Penalty  :  no  revenues  of  any  kind  for  board  members  
  21. 21. Ini4a4ves  With  the  legisla4on  on  equality  in  Belgium,  the  propor4on  of  women  in  parliaments  has  risen  more  than  20%  in  ten  years  
  22. 22. Italy,  the  law  •   The  law  was  adopted  on  the  29th  of  June  2011  •   Objec4ve  :  20%    from  2012  and  33%  from  2015  •   Only  for  listed  companies  •   Penalty  :  several  steps  from  warning  to  financial  sanc4on  (up  to  1  million€)  and  decay  from  boards    
  23. 23. Netherlands,  the  law  •   The  law  was  adopted  in  May  2011  •   First  to  be  implemented  in  both  boards  and  exec  –  30%  of  women  •   Validity  of  3  years  (2012  –  2015)!  •   No  penalty  –  only  explana4on  of  efforts    undertaken  
  24. 24. Spain,  the  law  •  Law  adopted  in  2007  •  Objec4ve  of  40%  of  each  sex  by  2015  •  No  penalty  –  but  taken  into  account  for  public   subsidies  or  state  administra4on  contract  •  Results:  4%  in  2006  to  11%  in  2010  
  25. 25. The  European  Commission  •  14%  of  board  members  at  Europe’s  top  firms  are   women,  up  from  11.8%  in  2010.  •  «Ce  qui  compte  pour  moi,  c’est  le  résultat.  Mon   objec+f  est  de  porter  la  présence  des  femmes  au   sein  des  conseils  d’entreprises  des  principales   sociétés  cotées  en  bourse  en  Europe  à  30  %  d’ici  à   2015  et  à  40  %  d’ici  à  2020.»  •  Failure  of  the  charter  for  corporate  commitment  •  9  countries  are  opposed  to  the  ini4a4ve  (UK  and   Nl)  +  Germany  
  26. 26. Conclusions  (2)  5.  Mid-­‐term  targets  help  to  meet  long-­‐term   goals  6.  Progress  towards  equal  representa4on  for   women  and  men  is  slower  for  execu4ve  board   posi4ons  7.  Quota  legisla4on  does  not  increase  the   number  of  female  CEOs  8.  Awareness  raising  and  promo4ng  women  help   reaching  targets  
  27. 27. Conclusions  1.  Interven4on  makes  a  difference  in  progressing   towards  equality  on  boards  2.  Self  regula4on  builds  ground  for  legisla4on  3.  Quota  legisla4on  is  most  effec4ve  when   endorsed  by  sanc4ons  4.  Effec4ve  self-­‐regula4on  requires  targets,   deadlines  and  state-­‐endorsed  monitoring  
  28. 28. Quotas  are  not  a  scandal  –  what  is  a  shame  is  that  we  need  it!  
  29. 29. Conclusion  Women’s  energy  and  talent  are  the  most  untapped  renewable  sources   of  energy  in  the  world!  
  30. 30. Isabella  Lenarduzzi  Founder  and  Managing  Director  of  JUMP  isabella.lenarduzzi@jump.eu.com        +32  3  346  32  00  info@jump.eu.com    jump.eu.com    www.jump.eu.com  

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