Sharp rise in women in top business positions
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The mandatory diversity quota in the Netherlands means that considerably more women are on the supervisory boards of listed companies. This is evident from research conducted by the Netherlands Bureau for Economic Policy Analysis (CPB) to which Leiden University also contributed.
Since 2022, listed companies in the Netherlands have been required to ensure that at least one-third of their non-executive directors are women. That seems to be having an effect: in three years, the number of companies that meet this standard has increased by 59%. In total, 92% of listed companies met the quota in 2024 (see infographic, in Dutch).
Quota makes difference visible
Egbert Jongen, Professor of Economics and Socioeconomic Policy, who contributed to the study says there had been a trend for some time that more women are filling these top positions. 'So, the upward trend is not only due to the quota. But if we compare listed companies with large companies that do not fall under the quota because they are not listed on the stock exchange, though are otherwise comparable to it, we see a big difference in the increase.' In fact, in 2024, only 56% of these large companies met the standard of one-third women on the supervisory board (see infographic). 'That shows that the quota has had a significant effect,' Jongen says.
Obligation works better
The measure therefore seems to work better than the self-imposed targets that apply to large companies. 'Without the quota, it would probably have taken much longer before one third of supervisory boards was composed of women. There’s a kind of fine for non-compliance with the quota: if a company doesn’t fill a vacancy for a non-executive director according to the mandatory male/female composition, that place must remain empty.'
What happens when the quota expires?
The quota applies until 2030. The question is what happens when the quota expires? Jongen hopes for a lasting change in the composition of supervisory boards: 'Internationally, the Netherlands lagged considerably behind when it comes to the proportion of women in top positions. It would be a shame if we go back in time after the quota expires.'
'The research shows that the women who join the supervisory boards have the same qualifications as the men (and women) who were already members of them,' he says. He sees this as a positive result, because it shows that the objection of critics that people with fewer qualifications would become supervisory directors because of the quota did not transpire in practice.
Equal opportunities and even more diversity
The economist would like to see opportunities for future research into the question of whether a larger share of women in top positions also leads to smaller male-female differences in organisations, for example in terms of pay and chances of promotion. He also hopes for more diversity within organisations. 'It would be nice if organisations at all levels became more diverse, so that, for example, people with a migration background also have more opportunities,' he says.