Germany is set to introduce legislation that will require German firms to allot 30 per cent of their non-executive board seats to women from 2016.
The country’s two major political forces, Chancellor Angela Merkel’s conservatives and the Social Democrats (SPD), agreed on the new rules as part of negotiations to form a coalition government following September’s election.
The agreement is a step forward in negotiations which have made only modest progress since starting three weeks ago. Both sides are making concessions but the conservatives want their election victory to be reflected in the final deal.
The new quota will apply to all listed companies and those with a works council. Companies unable to appoint women to at least 30 per cent of open board seats from 2016 would be required to leave the seats vacant.
Germany introduced voluntary targets for women in top management positions in 2001, but little changed. In 2011 blue-chip companies agreed to try to boost women on boards, again through voluntary targets.
