site.btaNew Rules for Improved Gender Balance in Corporate Boards Take Effect in EU

New rules for improved gender balance in the boards of listed companies take effect from the start of 2025. In an announcement on Friday, the European Commission said that the deadline for transposition of the new directive - Gender Balance on Corporate Boards Directive - by the Member States was December 28, 2024, and companies have until the end of June 2026 to enforce the rules.

The Directive sets a target for EU large listed companies of 40% of the underrepresented sex among their non-executive directors and 33% among all directors.

The share of women in corporate boards is 34% on average in the EU. Since 2010, the representation of women in corporate boards has improved in most EU Member States, but the extent of progress varies considerably and in some Member Sates it is stagnating. For example, in 2024, women accounted for 39.6% of the board members of the largest listed companies in countries with binding gender quotas, compared to 33.8% in countries with soft measures, and just 17% in countries that have taken no action at all.

The Commission will check the notifications of Member States of their transposition measures, and whether these measures correctly transpose the provisions of the Directive. It can launch infringement proceedings against Member States that fail to notify transposition, or to correctly transpose, the Directive. Throughout the transposition period, the Commission supported Member States to ensure correct transposition, for example through workshops and bilateral consultations.

The Commission cites a 2024 Special Eurobarometer on Gender Stereotypes shows that EU citizens generally support gender equality as beneficial for all. Positive progress has been noted, with three out of four respondents agreeing that men also benefit from gender equality. 55% of EU citizens are in favour of introducing measures, to overcome the underrepresentation of women in decision-making. Across the EU, women make up 34% of the share of members of boards in largest quoted companies, supervisory boards or boards of directors. The 2024 European Institute for Gender Equality (EIGE) Index rated women's empowerment in economic decision-making at 57,6 points out of 100, 2,9 points higher than in 2023.