The European Union this week agreed to enact a quota requiring that the underrepresented sex make up at least 40% of board seats at large companies. In the U.S., where no equivalent exists, how do proportions of women on company boards compare?
requiring that companies ensure at least 40% of their seats on corporate boards go to the “underrepresented sex,” which is typically women. The move comes after 10 years of stalemate over the proposals.
The new law goes into effect for all 27 member nations June 30, 2026, and only applies to publicly-listed companies with more than 250 employees. The four-year delay in implementation is due to a peculiarity within the EU legal system that essentially bakes in extra time for member nations to hit the quotas.
We have seen that quotas work, and frankly not enough progress has been made without smart policies pushing things in the right direction.Two of the nation’s largest financial institutions—Nasdaq and Goldman Sachs—have taken gender quotas into their own hands.
These initiatives are reflected in the numbers: Women held 23.9% of board positions across all U.S. companies in 2021, according to data from. The percentage of women on boards in Nasdaq companies was 30.4%, sitting much higher than the proportion of women on boards of Fortune 500, Russell 3000 and private companies .
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