Attitudes Toward Gender Quota Legislation on TMT-level Positions

Abstract

In 2010, Iceland became the second country in the world after Norway to enact a minimum 40% gender quota for corporate boards. The legislation did not pass without resistance, and concerns were voiced that gender quotas undermined competitiveness and merit-based selection. The legislation had the effect of improving the gender imbalance on corporate boards. Nevertheless, the expected trickle-down effect on the top management team (TMT) level has not materialized; women face apparent exclusion from senior executive positions, and men hold 22 out of 26 CEO positions at listed companies. Women hold 31.6% of TMT-level positions in listed companies, and women business leaders in Iceland have started calling for a gender quota on TMT-level positions. This study aims to measure public attitudes toward interventions to close the gender gap and ensure equal opportunities for men and women to reach top management positions. The study focuses on attitudes toward gender quota legislation on TMT-level positions, with a requirement of at least 40/60% gender balance, identified in qualitative interview studies with board members representing all listed companies in Iceland. We find gender differences in the attitudes toward the TMT-level quota in conjunction with beliefs about equal opportunities for men and women to be hired as CEOs, beliefs about the effect of gender quota legislation on merit-based hiring, and beliefs about the rate of progress toward gender balance. The study contributes to the literature on closing the gender gap by exploring public attitudes toward a legislative intervention that has not been the focus of research so far.