Switzerland Seeks 30% Female Representation in Management Positions

On Friday, December 7, the Swiss government proposed a draft bill recommending that the share of women in management and board positions of major companies reach at least 30 percent. This move is a preliminary step by the Swiss government to utilize legal mechanisms to increase the number of women in these roles. According to Reuters, compliance with this quota is not mandatory for companies under the proposed bill. Unlike some other European countries that impose penalties for non-compliance with female representation quotas, the Swiss government has only required companies to provide explanations. Nevertheless, this decision is expected to have a significant impact in Switzerland. The number of women in management positions at major institutions such as UBS, Novartis, and ABB is limited, and the government's voluntary efforts to change corporate behavior in this area have so far been unsuccessful. Simonetta Sommaruga, the Swiss Minister of Justice, stated at a press conference on Friday: 'Currently, in 60 percent of publicly listed companies, there is not a single woman on the board.' She added, 'The government has considered ways to reform gender quotas and mandatory measures to implement this quota, including sanctions. The government has concluded that a legal clause with the concept of 'comply or explain' could create significant pressure.' According to Reuters, under the proposed bill, which must be reviewed by political parties and legislative bodies, major companies must align themselves with this new law within a five-year period. Research by the Swiss Employees Association (SEV) and an independent financial management company called Z Capital indicates that women currently hold 16 percent of management positions in 20 major companies registered in Switzerland. The Swiss Green Party, which has long advocated for quotas for women in management positions, stated that the government's action is insufficient. The Green Party's statement said: 'The Greens demand a minimum and mandatory quota for women on boards, not just a recommendation. The government must also consider the possibility of penalties.' The statement continued: 'In Germany, a mandatory quota for women has been approved by the government. Only Switzerland is once again moving at a snail's pace.' Norway was the first country to legalize gender quotas in 2003, requiring at least 40 percent of managers and board members of public companies to be women. Other countries, including France, Spain, the Netherlands, and recently Germany, have adopted similar laws following this model.