Print Friendly, PDF & Email

What is Germany’s new boardroom quota for women?

Topics Covered: Issues related to women.

What is Germany’s new boardroom quota for women?


Context:

Germany is planning to impose a mandatory quota for the number of women working in senior management positions in the country’s listed firms.

  • This historic move is being seen as the next step in narrowing the gap of sexual inequality in the country.

What is Germany’s new boardroom quota for women?

As per the agreed-upon provisions:

  1. In case executive boards of listed companies have more than three members, one of them must be a woman.
  2. Companies in which the federal government has a stake will require a supervisory board quota of at least 30 per cent and minimum participation in executive boards.

Why is there a need for such a quota in Germany?

Since 2015, Germany, which is Europe’s biggest economy, has had a voluntary quota of 30 per cent for women on supervisory boards.

  • However, various studies have indicated this did little to improve the proportion of senior executive positions held by women.

InstaLinks:

Prelims Link:

  1. What is boardroom quota for women?
  2. Which country recently provided it?

Mains Link:

Discuss how this helps improve the proportion of senior executive positions held by women.

Sources: Indian Express.