From 30 June 2026, large companies with more than 250 employees that operate in the European Union (EU) will have to ensure that 40% of their board seats are held by women as a result of a new agreement. After a decade of deadlock over the proposals, EU lawmakers have finally agreed on what is being hailed as a “landmark” deal for gender equality.
The mandatory quota will be a legally binding target and if not met, companies may also be fined for failing to appoint women to their non-executive boards and see their appointments cancelled for non-compliance.
The EU has also set a target that a third of senior roles—including non-executive directors and directors such as CEO and COO, be held by women. Last year, 30.6% of boardroom positions were held by women on average across the EU with the ratio differing between member states.
According to data from the European Institute for Gender Equality, France—which has an existing 40% threshold, is the only European country that currently meets the future quota with 45.3% of board seats occupied by women last year. Italy, the Netherlands, Sweden, Belgium and Germany were the next best; achieving female participation levels of between 36% to 38%.
However, in Eastern Europe including Hungary, Estonia and Cyprus, fewer than one in ten non-executive directors were women.
Internationally, and prior to Brexit, the UK is one of the best performers in Europe with 39.1% of women sitting on FTSE100 boards in 2022. However, it is important to note that the UK does not have a mandatory quota and has taken a voluntary approach to ensuring greater female representation in the boardroom.
Paul Arkwright
Publisher
