The term glass ceiling first appeared in 1978 in a panel on women at work. The panel discussed the cultural challenges women face when their careers stall in mid-level managerial roles and prevent them from reaching higher leadership or administrative positions. Sixty percent of current university graduates in Europe are women. Despite this, there are more men than women in senior positions, including company boards of directors.
Although progress has been made since then, the glass ceiling still appears to be a problem facing women today.
In 2019, the Bureau of Labor Statistics reported that women's wages were, on average, eighteen percent lower than men's. The 2017 Pew Research Survey revealed that 42 percent of women in the United States had experienced gender discrimination in the workplace. In Fortune 500 companies, on the other hand, it has been revealed that women hold less than 9 percent of the CEO roles of the companies. In 2021, women held thirty-six percent of board positions across the EU. However, there are individual differences in the mentioned 27 member states.
According to the European Institute for Gender Equality, France, which has a forty percent quota of women on its boards of directors, has become the only European Union member country to exceed this threshold, with forty-five percent of the board seats held by women. It has been observed that thirty-six and thirty-eight percent of women participate on the board of directors of companies serving throughout Italy, the Netherlands, Sweden, Belgium, and Germany. These countries, which are at high levels worldwide but low in women's employment in terms of equality, are among the second-best countries. It has rolled up its sleeves for this process, which has become gangrenous for years in the European Parliament and has not been resolved realistically and rationally for many years. They created a supranational bill as the best way to produce a permanent policy. This step will lead the world with this step.
With the related draft law, the new European Union draft law on ensuring gender balance in company boards of directors was officially accepted last month. With the law, it is obligatory to have a gender equality balance in the board of directors of companies traded on the stock exchange in any European Union country. The principle of transparency has been introduced in the appointments to be made for any position on the board of directors. An objective evaluation will be made of the candidates for each position on the board of directors, regardless of gender. This draft law, which was brought on merit, aims to break the prejudiced stereotypes that societies impose on genders.
With the draft law expected to break the glass ceiling, it will enter into force on 30 June 2026. As of 30 June 2026, the minimum percentage of women who do not have adequate representation due to their gender among the managers who are not assigned to the executive boards of companies operating in the European Union will be forty percent. Establishing an inclusive and egalitarian order is a start, and it is thought to increase by forty percent. A minimum of thirty-three percent of directors, chief executive officers, and operational managers, who do not have an executive role on the board of directors, but are still on behalf of consultancy, must be women. Many sanctions, such as fines, have been determined as a result of unlawful behavior of companies belonging to Union member countries. Even the board of directors members can be changed due to the companies' illegal acts.
What are the Main Elements of the Law?
A related draft law has been created to ensure that no gender is underrepresented. At least forty percent must be represented on the boards of listed companies, or thirty-three percent among all directors. Member states must ensure that companies strive to achieve this goal. Companies that fail to achieve the set targets should apply transparent and gender-neutral criteria when appointing directors during the recruitment process. Where two candidates of different genders have equal qualifications, priority should be given to the underrepresented genders. Where two candidates of different genders have similar capabilities, priority will be given to the candidate of the less represented gender in companies where the gender balance target is not met.
Companies should share their qualification criteria with everyone. At the same time, the requirements must comply with ethical values. It should be stated clearly and clearly why the demands of the unsuccessful candidates could not be met. It should not be aroused any suspicion that candidates who have the same qualifications as those who were not elected in public opinion were not selected solely on the grounds of their gender. In case of doubt, he must prove that no measure has been violated. Companies must make individual commitments to achieve gender balance among executive directors.
Companies that do not comply with the directives required by the relevant law are obliged to report the reasons for the deficiency and the measures they have taken to remedy this deficiency. Penalties for companies that fail to comply with their election and reporting obligations are effective, proportionate, and dissuasive. Sanctions such as fines, cancellation of the appointment of the objected manager, or nullification of the election have been determined. Companies that have succeeded within the member states by reaching the target of forty percent will also be shared. Thus, both motivations will be increased, and social pressure will be created.
As a result, a step towards gender equality, which has not been resolved for years, has been taken for a realistic and rational solution for the European Union. With this step taken, the socio-economic place of women in society will be strengthened. The related draft law is aimed at ensuring gender balance in company boards of directors. In the appointments to be made for any position on the board of directors, many different sanctions are envisaged for behaviors that do not comply with the principles of transparency and merit. The focus of merit is aimed at breaking the prejudiced stereotypes that societies impose on genders.
Author:
Çağın Ergün
Source:
Коментари