Women at the top. Not in Europe.
Germany’s chancellor, Angela Merkel, calls is it a real scandal. Euro commissioner, Viviane Reding, says that the situation has to be different by 2012 otherwise new laws will be installed which will be met by sanctions if they are not carried out properly. Both women are at the top of their industries which is why they are so disappointed that even today in 2011 there are still too little women in top management positions in major European companies.
Less than 5 percent of board member in major European companies is female
The German Institute for Economic Research (DIW: Deutsches Institut für Wirtschafsforschung) recently published a research in which it was found that:
- There are zero women in the top management of the Deutsche Bank;
- Only 2,2 % of board members in Dax-30 companies (major German companies trading on the Frankfurt Stock Exchange) is female;
- Within another 200 big companies in Germany only 2,5 % is female;
- There is a total of 4 female managers/CEO’s within the 100 highest earning German companies.
Unfortunately the number of female managers, board members and/or CEO’s on a European level are not much higher either. According to figures from the European Commission about 89 percent of board members in European stock exchange companies is male. Reding says: ‘We are not talking about small companies here, we are talking about the 500 largest investment firms of which only 3 percent of all commissioners is female. Within the company board only 1 out of 10 members is a woman.’
Penalties for companies which do not incorporate more female board members
Both Reding and Merkel have said that laws will be changed to ensure that women can and will reach the top. Earlier promises have been made by major companies that more women will be able to break ‘the glass ceiling’ yet the results are disappointing, as proven by this research. Now the commissioner and chancellor are saying that penalties will be applied if the statistics do not change by 2012. Some European countries are already well on there way. For example:
- In Norway companies van be dissolved if they do not meet the 40 percent quota, which has been introduced in 2003.
- After Norway, Spain applied a similar quota, which is also penalized if not met by major companies.
- France has installed a law, as of the 1st of January 2011, which should raise the amount of female managers in major companies to 40 percent within the coming 6 years.
The ‘pink quota’ has not been approved of yet in all European
countries
Italy has also passed a law in which it is stated that 30 percent of the board of stock exchange listed companies has to be female. This law, which has been called ‘the pink quota’ by some, has not been approved of yet by the Italian senate. The same applies for The Netherlands. A law stating that more women should be at the top has been proposed but it has not been implemented yet. Whether these laws have an effect depend greatly on how they are carried through and what sanctions are given in case the quota is not met.
Document type
Research