A European Union (EU) law requiring gender balance on corporate boards was adopted by the European Parliament on Nov. 22, 2022. The directive requires that listed companies have 40 percent of nonexecutive directors, or 33 percent of all directors, be members of the underrepresented sex by the middle of 2026.
Directive 2022/2381 is designed to ensure that gender balance on corporate boards of large, listed EU companies is established, that appointments to board positions are transparent, and that board candidates are assessed objectively based on their individual merits, regardless of gender.
