The Government gives two more years to small listed companies to reach 40% of women on their councils

2023-05-23 18:48:03

Government and two more years term, until mid-2026, so that the small listed reach the 40% women in their boards of directors and senior management positions. This was reported this Tuesday by the Third Vice President and Minister of Economy, Nadia Calvino, in the press conference after the Council of Ministers in which the green light was given in the second round to the draft parity law that they aspire to enter into force this year. The SMEs are exempt from this rule.

The norm, approved in March in the first round, established that all listed companies they had to reach that rate before June 30, 2024. But now the government has established a staggered calendar, by forcing to reach 40% of women from June 30, 2024 only to companies in the Ibex 35. Meanwhile, listed companies with a market capitalization more than 500 million euros will have until June 30, 2025 and the companies with a lower capitalization, until June 30, 2026.

Of the not listedonly affects the big enterprises with more than 250 workers and a turnover of more than 50 million euros or an asset of more than 43 million euros considered of public interest (credit institutions or financial and investment services companies). So far they had reference date 2026without any discrimination. But now they are divided into two dates: as of June 30, 2026 they must reach the 33% target and as of June 30, 2028 the goal of 40%. For the governing boards of professional associations o The general advice is set as a reference on June 30, 2026

In all cases, it is established that neither sex may have a representation of less than 40%. nor more than 60%hence there could be no entirely female boards of directors either.

As published on Tuesday by the National Securities Market Commission (CNMV), the presence of women on boards of directors of listed companies in Spain stands at 32%, following the recommendation of the Good Governance Code, which since 2020 promotes women reaching 40% of the positions on the boards of directors. In the specific case of the Ibex, the rate is 37.56%, but for companies with a capitalization of more than 500 million it drops to 32.23% and for the rest of the listed companies to 26.22%. In the case of the high direction (excluding senior board directors), where there is no guidance from the supervisor, women represent on average the 21.73% of the total positions.

Sanctions regime

In the case of breachthe sanctioning regime approved in March is maintained, which is more strict in the case of boards of directorswhile for the Management positions ‘only’ requires the company to explain why it does not comply with the standard and define those measures to achieve that minimum percentage in its memory annual. In the case of listed companies is established as a serious infringement failure to comply with these provisions, according to a statement sent by the Ministry of Economy.

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“We take an important step to achieve the effective parity without for it set disproportionate demands about big companies. And without establishing these requirements for small businesses in order to have a regime that is proportionate and that it achieves the objectives, without thereby having a negative impact from the point of view of the operation of the companies in our economy“Calvino said.

Public administration

In the public sphere, in addition to within the Government, the 40% target will also apply to appointments to constitutional and institutionally relevant bodies (Constitutional Court, Council of State, Court of Accounts, Fiscal Council and General Council of the Judiciary) once the law comes into force. And, in the case of the General State Administration and the state institutional public sector, five years later, with the exception of higher and managerial bodies, as well as bodies for awarding prizes that must apply it immediately after approval. In the positions of the military career appointed by the Council of Ministers (lieutenant general, Chiefs of Staff, etc.) its application requires regulatory development.