According to a bill passed by the Parliament German companies are required to appoint women as part of their board and have a voice in the joint decisions taken by a corporation’s higher-ups. The change is introduced as a result of failing to reduce the gender gap prevailing in the country.
The new guidelines state that listed businesses with a minimum of 4 executives or more must have female representation which shall be a historical move on behalf of the nation’s business sector.
Justice Minister Christine Lambrecht told the press that this a clear sign to all sorts of organizations to seek benefits from the insight, knowledge, and experience qualified and skilled women have to offer.
Minister Franziska Giffey for Family Affairs remarked that this is an opportunity for Germany to show to the world that they are ready to take the modern route and may just have enough potential to soon become a force to be reckoned with.
The country holds a fairly poor record for having an unequal number of females working at senior posts and top positions. Experts say that only about 12.8% of women take top roles in 30 of the largest companies listed on the Frankfurt stock exchange’s DAX index.
In comparison, others like the USA, France, and Britain are ranked higher with 28.6%, 22.2%, and 24.5% respectively.
The decline is majorly due to the spread of the COVID-19 which has had a huge impact on the country’s overall economy.
As of now, no DAX company has a woman at its helm however Merk, a pharmaceutical firm is currently making efforts and trying its best to set an example and encourage other institutes to follow suit.
Companies have been very accepting and welcoming towards this newly established law but it seems that it will take time to be implemented in full force.