Strasbourg, 21/11/2013 (Agence Europe) - The European Parliament has overwhelmingly said yes to a quota of 40% of women on the boards of directors of large European companies quoted on the stock exchange from 2020 onwards (see EUROPE 10967). This Wednesday 20 November was described as “historic” by Vivianne Reding, European Commissioner for Fundamental Rights, who was behind this controversial text. Determined to shatter the famous “glass ceiling”, which has kept the proportion of women on companies' boards down to 16%, she is now awaiting the position of the Council, which is divided over the issue. In an interview with EUROPE, Reding told us what the EP's vote implies and explains more about the basis for her proposal (our translation throughout). (MD/transl.fl)
Agence Europe: How do you interpret the vote of the European Parliament on your proposed directive, which was supported by a vast majority, even though you have been criticised within the College and the Council before a quota was even presented?
Viviane Reding: I am extremely proud of the Parliament, which has managed to reach an agreement which goes beyond political differences. It is interesting to see that, in the major political parties, the ideological clash on the issue has disappeared. With this overwhelming yes of the EP, we can see the right-wing, the centre, the Liberals, the Greens, the Socialists, the Communists - in short, the entire political spectrum. The only ones who are really against it are the British Conservatives and a few elements of the extreme right. But that is just a detail, what I feel really matters is that, in the major political families, in all their diversity, there is consensus.
Will this motivate the Council to get down to business over this dossier, which has been delayed partly because around ten countries are opposed to a European quota? Could the fact that the subject is being discussed in Germany ahead of a CDU-SPD coalition also affect the situation?
A coalition agreement is being discussed in Germany, which is likely to include legislation on quotas in Germany (Ed: 30% in 2017). This will certainly be good news. And I feel that the vote across the parties of the European Parliament sends out an extremely clear signal to the governments to show that the people's elected representatives want to move forward on this. We have got past the point of the ideological fight. We will never find the perfect instrument which will get a standing ovation from everybody, but we have found a procedure which will allow female talent to make a contribution to the economic development we need.
What is the instrument decided on by the Parliament and the Commission?
What Europe has proposed is not a quota cast in stone, but procedural quotas for the selection process for future board members. This selection must be transparent and give qualified and talented individuals, including women, a chance, because they frequently do not have access to the selection processes. It is in companies' interests to make use of these talents and it is therefore up to us, the politicians, to break the “glass ceiling” which is holding back female talent.
The Parliament has tightened up the sanctions to be imposed on companies which fail to set recruitment procedures in place to achieve the quota. Do you agree with this?
On a number of elements, the Parliament went further than my text. The main message is that we want things to change, we want to move selection procedures on. Now, how these selection processes will ultimately be applied has to be negotiated between the Parliament and the Council. I am fairly relaxed over the details put forward by the Parliament, as I will also be over the details to be proposed by the Council. At the end of the day, it is these two institutions which will negotiate a joint text. At this point, I have not yet had my final say, the Parliament has tabled its position, and I hope that the Council will do so as well.
Essentially, the proposal will affect only a very small proportion of women in Europe. Why has it been limited to non-executive positions?
Because the board is effectively the management of a company, and we shouldn't meddle with how a company functions. The board appoints the directors, which means that this will also give women a chance. In the directive, it is stated that every company has to have an action plan on how to promote women to board positions, to support their careers through the company, to allow them to become chief executives. We have no intention of intervening in management.
Even so, few women are really able to identify with this legislation, particularly as there are no more than 5,000 large companies quoted on the stock exchange in Europe. Will the procedure be mainly symbolic, to create positive impetus?
It is a strong signal to show women can do it, that they are capable of leading companies. This provides a model.
This is a transitional measure, why has parity in businesses not been set in stone?
It is an instrument we need to break the glass ceiling. But once it is broken, we will no longer need a law, because the best man or woman will quite simply win! But today, talented women are not getting the chance to get on. And that is what we have to change. Once the system is working naturally, we no longer need a law. That is why I included an expiry clause for 2028 so that it is automatically cancelled, unless the EP and the Council decide that things are not yet as they should be, and that it should remain in place.