EU to introduce 40% quota for women on boards of directors

After a ten-year break, the European Parliament raised the issue of gender equality in big business. The European Parliament and the Council of the EU have reached a preliminary agreement on the introduction of a mandatory quota of 40% of the seats in the corporate boards of large companies for women. The agreement still has to go through a vote in the European Parliament and approval in the Council of the EU.

Since 30 June 2026 years large companies operating in the EU will have to ensure that a 40% share of the "unrepresented sex" - usually women - on company boards and in senior positions. The obligation will not yet affect small and medium-sized enterprises with up to 250 employees.

What now?

In 2021, women held 30,6% of board positions across the EU. However, this figure varies significantly across the 27 States. According to the European Institute for Gender Equality, France is the only country where the 40% threshold is exceeded: women in France hold 45,3% of board seats.

In Italy, the Netherlands, Sweden, Belgium and Germany, this figure ranges from 36% to 38%. In Hungary, Estonia and Cyprus, however, less than one in 10 board members are women on average. At the same time, according to the European Commission, now 60% of university degrees are received by women.

Read more: our article on the share of women on the boards of directors of publicly listed companies in the Netherlands in 2019-2020.

Attempts to introduce a quota 10 years ago

The European Commission first proposed a 40% quota for women on boards of directors in 2012, but the plan was blocked by major EU member states, including Germany and the UK. However, there are now 39,1% of women on the boards of directors of large companies in the UK.

Ursula von der Leyen, President of the European Commission, speaks of the need "break the glass ceiling", because "there are many women suitable for higher positions: they should be able to get them." She expects more business growth and a range of innovations through the participation of women.

What are the consequences of introducing a quota?

Member of the European Parliament Lara Wolters, representative of the Dutch Labor Party (PvdA), believes that the appointment of women to senior positions in large companies will have consequences at all levels like a domino effect. In particular, it will help correct the situation with inequality in wages and career opportunities, and increase the variety of available jobs for women. "This will give you a boost in the right direction.”, — says the Dutch politician.

If the European Parliament and the EU Council approve the introduction of the quota, EU member states will have two years to implement this innovation into their national legislation. And then companies will be fined for non-compliance with the quota of women in the board of directors and in senior positions. National courts can annul board elections if a company breaks the law.