In Germany, large listed companies will have to ensure that women are represented on their boards, according to a new bill.
The content will continue after the announcement
The invoice in which Germany The coalition government agreed on Wednesday, stipulating that listed companies with at least four board members must have at least one of these members a woman.
The bill will be presented to parliament.
German Justice Minister Christine Lambrecht told reporters that the bill sends a “very strong signal” and called on companies to “seize the opportunity offered by highly qualified women.”
“We can show that Germany is on the way to becoming a modern society that is fit for the future,” said German Minister for Family Affairs Francis Gifife.
Germany, Europe’s largest economy, lags behind other countries in terms of representation of women in management positions.
Of the 30 largest German companies included in the DAX index of the Frankfurt Stock Exchange, only 12.8% of board members are women, according to data compiled by the AllBright fund.
In US companies, women hold 28.6% of managerial positions, in Great Britain 24.5% and in France 22.2%.
In Germany, the representation of women in management positions has declined during the new coronavirus pandemic. Germany is the only major economy with that trend, AllBright concluded.
11 In the German companies included in the DAX index of the Frankfurt Stock Exchange, all board members remain men.
Women in Germany earn on average 20% less than men. In the European Union (EU), women earn on average 14% less than men.
None of the German companies included in the DAX index of the Frankfurt Stock Exchange is currently headed by a woman, but this situation is expected to change in May, when Belena Gario will become the director of the pharmaceutical company “Merck”.
In companies where the majority of the shares are controlled by the government, the rules will be even stricter. In such companies, there must be at least one woman on the boards with at least two members.