Gender Balance in Leadership: Beyond the EU Women on Boards Directive

Gender balance in leadership is now a topic for law as well as for culture. Directive (EU) 2022/2381, known as the Women on Boards Directive, applies to large listed companies in the EU. Companies in scope are expected to reach at least one of two targets by 30 June 2026: the under-represented sex holds at least 40% of non-executive director positions, or at least 33% of all director positions.

The Directive also requires fair, transparent selection procedures: candidates are assessed on pre-defined, clear and gender-neutral criteria, and where candidates are equally qualified, priority may go to the under-represented sex. Member States were due to transpose it by 28 December 2024. Small and medium-sized enterprises are outside its scope, and some countries already had national rules.

If you are not a large listed company, the Directive does not directly bind you. But boards are only the top of a pipeline, and that pipeline starts much lower.

Where the pipeline leaks

Quotas change who sits on a board. They do not fix what happens in the years before. Common leaks include:

• Hiring and first promotion. Small differences in who is promoted to first-line manager compound over time.
• Informal sponsorship. High-visibility projects often go to people leaders already know and trust.
• Performance language. Feedback can describe similar behaviour differently depending on who shows it.
• Rigid work design. Expectations about availability and caring responsibilities can quietly rule people out.
• Isolation. Being the only woman, or the only person of a given background, in the room carries a cost.

Seven actions any organisation can take

1. Measure the pipeline. Track representation, hiring, promotion and attrition by gender at each level, not only the top.
2. Use structured selection. Define criteria in advance, use the same questions with every candidate and assess against them. This is also the best protection against bias.
3. Make sponsorship deliberate. Assign senior sponsors, and review who gets stretch assignments.
4. Review evaluation language. Calibrate performance reviews and check for patterns in the words and ratings used.
5. Design flexible careers. Offer flexibility that does not penalise progression, and encourage all genders to use it.
6. Train leaders. Managers decide most of what happens in the pipeline, so they need skills in inclusive leadership, feedback and bias interruption.
7. Connect to pay. Equal pay and equal opportunity are linked. The EU Pay Transparency Directive makes the connection explicit.

Culture is what makes targets stick

A balanced board that sits on top of a culture where women are interrupted, overlooked or isolated will not stay balanced for long. Lasting change needs inclusive daily habits, supported by fair systems.

How we can help

Our diversity, equity and inclusion training covers gender equality, unconscious bias and inclusive leadership. We also work with organisations on talent solutions such as inclusive recruitment consulting, coaching and mentoring. Contact us to talk about your leadership pipeline.

This article is for general information only and is not legal advice. Rules differ by country and change quickly, so check current national law or ask your legal adviser before you act.