The EU Directive on Women on Boards

Abstract

After 10 years of delay, in November 2022 the EU passed the Directive on improving the gender balance among non-executive directors of companies listed on stock exchanges. This Directive imposes a 40% quota in respect of the underrepresented gender for listed company boards in the EU. The aim is to diversify corporate boardrooms and thereby boost economic growth and gender equality (among other objectives). In this paper I look at the mechanisms of the Directive and consider their practical effect and potential impact. I also ask whether the Directive has missed an opportunity to make a more tangible difference to gender equality by failing to effectively consider executive director diversity. I reach the conclusion that the Directive, as drafted, might have been suitable 10 years ago but is not necessarily today. The changes of the last 10 years threaten to mean the Directive becomes obsolete before its pre-destined end date in 2038. boardroom diversity, gender equality, quota, directors, company law, corporate governance, European Union