Norway’s government reached an agreement with the business lobby and unions to force large and medium-sized companies to phase in 40% female representation on their boards within five years.
In Norway, the government has prepared a draft law stating that large and medium-sized companies must have at least 40% female executives on their boards of directors. The proposal, submitted to parliament, aims to overcome practices that hinder women’s advancement in the workplace.
“Norway is the first country in the world to take this step,” Trade and Industry Minister Jan Christian Vestre said.
According to the bill, which is planned to be fully implemented within five years, next year, it will apply to 8,000 companies, and by 2028, it will extend to companies with more than 30 employees, totaling over 20,000 companies.
Women currently hold only around 20 percent of board positions in Norway, with the progression deemed slow considering the number was 15 percent around 20 years ago.
“In 2023, we still have too big a gap on Norwegian boards,” Vestre said.
Gender equality and diversity can contribute to “more innovation, a better professional environment, smarter decisions and more added value”, he stressed.
In 2005, a 40% quota was introduced for publicly listed companies
The minority centre-left government, which believed that the representation of women in top positions was progressing slowly, highlighted that this percentage had only increased from 15% to 20% over a span of 20 years.
In November of the previous year, the European Union reached a decision stating that 40% of non-executive directors and 33% of all board members should be women.
Norway achieved a pioneering milestone by introducing the 40% quota for publicly listed companies in 2005.