Making Markets Efficient: In Defence of Regulation of the Gender Composition of Corporate Boards in Europe

The gender profile of the members of corporate boards is a key indicator of vertical segregation of employment: of women's access to prestigious and influential 'top jobs' and the extent of the gender gap in decision-making in the economy. Based on results of a comparative European study(*) of trends in the presence of women on the board of directors of companies in Norway, Sweden, Finland, the UK, France, Spain, Slovenia and Hungary (Colette Fagan, Maria C. González Menéndez and Silvia Gómez Ansón (Eds.), 2012, Women on Corporate Boards and in Top Management – European Trends and Policy, Palgrave) we propose that fostering the principles of merit, capability and transparency at corporate boards in Europe requires cross-national regulation. More specifically, while developments over the last decade in codes of governance designed to raise women’s representation at board level in several countries have had some impact, it is evident that the introduction or threat of national gender quota regulations that promote women’s access to board positions is the most effective policy lever for increasing women’s representation at board level if accompanied by sanctions for non-compliance.(*) This research project was undertaken as part of the Research Project RECWOWE (Reconciling work and welfare in Europe) financed by the European 6th Framework Programme for Research.