EU Wants a Third of Board Positions to Be Held by Women by 2027

  • Companies are expected to give priority to female candidates
  • Only 8.5% of board chairs held by women as of last October

Source: Getty Images

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The European Union agreed to pursue requiring companies to take steps to ensure at least 33% of all board positions are filled by women by 2027 as the bloc looks to improve the gender balance in leadership roles of publicly listed companies.

Member states on Monday backed a general approach to pursuing EU legislation and starting negotiations with the European Parliament. They set a minimum target of having 40% of non-executive director posts held by women in five years, or 33% if all board members are included. Companies that fail to reach these targets would have to apply clear, unambiguous and neutrally formulated criteria when appointing or electing directors, according to a statement by the European Council.