EU Companies Face 40% Quota Rule Favoring Women on Boards

Companies may be required to favor women over equally qualified men for supervisory board seats, as they strive to meet a 40 percent quota for female directors the European Union set out in draft rules published today.

The European Commission adopted a proposal aiming to make boards two-fifths female by 2020, Mina Andreeva, a spokeswoman for EU Justice Commissioner Viviane Reding, said in an e-mailed statement. Regulators amended earlier versions so companies would only face sanctions if they fail to favor women, even if they don’t meet the quota.