Financial Firms To Appoint More Women To Boards Under New EU Directive

The year 2014 will mark the need for more women working in large financial organizations in their boards of directors. Well-known banks, investment companies and building societies will be asked by the European Union to register the number of women they intend to appoint to their boards of directors and also mention how exactly they think they would manage to do it. Download our Equal Opportunities Policy

According to the EU’s Capital Requirements Directive IV large financial companies will have to set up a nomination committee, the aim of which will be to set out the “target for the representation of the underrepresented gender on the management body and how to meet it”.

Consultation papers were published by the UK’s financial regulators, the Prudential Regulation Authority and the Financial Conduct Authority. These revealed the expectations of the EU that the equality on the board of directors will be improved.

These changes are now necessary after the April report from Cranfield University which pointed out that women held only 17% of board positions in FTSE 100 firms.

Linda Jones of law firm Pinsent Masons said that gender targets on UK businesses had to be set long ago.

However, Helena Morrissey, founder of the Thirty Per Cent Club, expressed her discontent with the directive.

“The UK is already making strong progress and to some extent any regulatory measures emanating from EU might seem academic as large banks already have stated targets,” she said.

She added that there needn’t be specially created quotas for women but they in fact had to demonstrate their skills and just then join boards.

Written by Legal Author

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