Breaking the glass ceiling: European Parliament takes one step closer to equality in the economic decision-making process

"Today, the European Parliament adopted a consistent and pragmatic Resolution by a large majority, in line with the values defended by the EPP Group, on equal representation of men and women on Boards of listed companies. Through this important vote, we sent out a strong signal to the Council, as well as to the European stakeholders and companies on the European Commission proposal for a Directive on improving the gender balance among non-executive Directors of publicly-listed companies", said Co-Rapporteur Rodi Kratsa-Tsagaropoulou MEP.

The Directive introduces an objective of at least 40% of Board members of large listed companies operating in all sectors, of each gender by 2020 for non-executive Directors, and by 2018 for listed public undertakings, and a flexible objective for Executive Directors. This objective ought to be reached through a transparent and meritocratic process.

In this respect, the adopted Resolution includes EPP Group amendments that significantly clarify the objective and efficiently reinforce the text in order to allow sanctions to be triggered when companies fail to comply with the mandatory procedures in order to reach the 40% objective. Member States must provide that listed companies, who do not establish, apply or respect the foreseen procedures for the appointment or the election of non-executive Directors shall be subject to effective, proportionate and dissuasive sanctions. Hence, the main aspect of the EP Resolution, in line with the EPP Group, is that the obligation lies on the procedure companies need to comply with in order to reach a general objective. Furthermore, the compliance is guaranteed individually by each Member State.

Another key issue for the EPP Group was the exception for SMEs as proposed by the Commission and heavily supported by our Group. This important exception has been kept in the Resolution, even though it is important to insist on encouraging Member States to put in place policies to support and incentivise SMEs to significantly improve gender balance at all levels of management and on company Boards.

"Companies do not hire men or women, they hire talent. However, in the process, companies often neglect to value women's skills. Therefore, I very much welcome the adopted Resolution, guaranteeing greater transparency, enhanced meritocracy and equal opportunities for women and men", noted Kratsa-Tsagaropoulou. "It is essential for listed companies to evolve so as to include highly-skilled women in the decision-making process, in accordance with our core principles and values of equality, but also in view of achieving economic growth and a competitive internal market", she concluded.