3.2.4.2 Effectiveness of quota legislation in terms of progress in the number of women on corporate boards?

The purpose of introducing the quota was to eliminate the unequal gender representation on management boards within five years.1 It is not clear what was meant with an equal gender representation at the time, but since the quota requires a minimum of one-third, it is probable that an equal representation will be achieved when the board is composed for at least one-third by women.

Although the latest figures for company compliance with the gender quota have not yet been published and data for 2019, the year for the last quota deadline, is missing, something can still be said about whether the aim of achieving equal gender representation on management boards has been fulfilled and whether the gender quota was ultimately effective. Research shows that ‘the most stringent public regulatory and enforcement approaches have secured the quickest progress in terms of (coming close to) achieving the set target’, which is the case for, among others, Belgium.2 The Belgian Corporate Governance Committee also observed that even though the quota is not supported by everyone it definitely has had an effect.3 Research also shows that the quota have had an effect.4 Between 2008 and 2016, the number of women on Belgian boards multiplied by 2.5, and between 2012 (one year after the introduction of the quota) and 2017 as many as 3.5 times; as the progress report of the Institute shows.5 Even in the years before introduction of the quota the number of women on boards rose, but between 2014 and 2017 the numbers grew exponentially (as Table 3.1 makes clear).6 There is, however, still room for improvement since one-third of the companies was not yet compliant in 2017.7 Another shortcoming is that the number of women in positions of power, such as in executive committees that fall outside the scope of the quota legislation, is still lagging behind.8 This is the reason why the State Secretary recently announced that she wants to adopt a gender quota for the executive committee as well.9 This indicates that only because quota legislation is in place for the management board, companies are willing to meet the quota, but only for the corporate bodies to which the quota specifically applies and not for other bodies.10 However, it is sometimes hard to assess whether the progress that has been made can be attributed to the approach adopted in Belgium, i.e., mandatory quota:

The publication of a new progress report in the summer of 2021 will show whether the adopted mandatory quota approach is effective and has succeeded in raising the proportion of women on boards to at least one-third.12