Blog by Rachael Saunders, Head of Communications, Opportunity Now.
Women on boards is a topic that is hitting the headlines again. The EU’s directives on women on boards as well as a number of other issues related to banking are starting to come into force – the FCA and the Bank of England are consulting on implementation, as the same time as it is revealed that the rate of recruitment of women to FTSE listed boards is slowing.
The impact of the EU Capital Requirements Directive on the finance sector will be that, rather than having the option to “comply or explain” on setting boardroom targets and policies to meet them, the targets will be set, with the EU monitoring adding extra scrutiny. This sits within a package of measures aimed at preventing the financial crisis of 2008 happening again.
This is not a dramatic shift for the companies affected – most had already responded to the Davies report with their own aspirational targets. It does mean that, as the target setting approach is entrenched in public policy, companies need to make it work – Commissioner Vivian Reding made it very clear that quotas are the next step.