Legislation To Institute Boardroom Quota For Women in Business Approved By German Cabinet

By Stephen Fuchs on Email @StephenWFuchs

Business Day

The German cabinet, led by Angela Merkel’s Christian Democrats (CDU) and coalition partner Social Democrats (SPD) pushed through a draft law that would require public companies to have a 30 percent quota for women on their boards by 2016.

Under the proposed law, small business would also see quotas put in place for the number of leadership positions offered to women, although the penalties that the roughly 108 publicly traded companies would face will not carry over to them. Small businesses will have a suggested number based on a sliding scale and in 2017 would have to regularly report on their progress.

This proposed quota legislation is a “milestone on the path of equality” according to Manuela Schwesig, minister of family affairs. “This legislation is the start of a process which will change the leadership and business culture in our country.”

Not everyone in the German government is in favor of the approves draft law however. The Christian Social Union (CDU) has been the most vocal against the law, citing potential damage to Germany’s economy if a quota is instituted.

 

Source: DW
Photo: The_Warfield [Flickr]

Stephen Fuchs
Stephen founded German Pulse and LGBT Germany out of a passion to introduce Americans to a Germany that goes beyond beer and polka (although with enough beer he has been known to polka it up a bit). He's a coffee addict, lover of wine and good times, a hit in the kitchen and editor of TV commercials. You can follow him on Twitter (@StephenWFuchs) to find out a lot more.
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