According to data from the European Commission, just 13.7 percent of top positions in Europe’s largest publicly traded companies are currently held by women. (source: Freepik/senivpetro)
Despite the progress made in gender equality, seeing a woman at the executive level of major companies remains uncommon, particularly in technical sectors and the private sphere. According to data from the European Commission, just 13.7 percent of top positions in Europe’s largest publicly traded companies are currently held by women.
To address this, new legislation has been proposed to improve gender equality within the leadership of companies operating in the European market, writes the Euractiv.sk website.
“Publicly listed companies should aim for a more balanced representation in their boards, especially for the underrepresented gender, which is currently women,” stated the Slovak Justice Ministry in its proposal.
The bill, approved by the government, has already been delivered to parliament, and the parliament is expected to hold a first reading in September, followed by further discussions in October. The bill, expected to take effect by December 28, 2024 at the latest, is based on the EU directive aimed at improving gender balance in the boards of publicly traded companies.
Companies will be required to report annually to the Labour Ministry on the gender composition of their executive boards. By 2026, at least 40 percent of non-executive directors, or 33 percent if executive roles are included, must be women. The ministry will publish a list of companies meeting the directive’s targets, while those failing to comply will need to provide action plans. Penalties for failing to submit information could follow.
Small and medium-sized enterprises are exempt from this requirement. Though the precise number of affected companies is yet to be determined, the Labour Ministry is in discussions with the stock exchange to identify specific firms.
Employer groups have mixed reactions. Some see the initiative as beneficial, with women bringing fresh perspectives to leadership, while others worry about increased bureaucracy. However, according to Andrej Lasz of the Association of Industrial Unions and Transport, the directive’s administrative requirements are limited to the year 2038 and many companies already have internal policies aligning with these goals.
After 10 years of talks, the European Parliament passed the directive in November 2022. Member states are currently incorporating it into national law.
