Despite impending quotas set by the European Union (EU) to address gender representation on corporate boards, a recent survey reveals a concerning trend: more men than women were appointed to the boards of major financial services firms in Europe last year.
Published by consultancy firm EY, the survey highlights a decline in the percentage of non-executive appointments of women from 51% to 44% in 2023. Alarmingly, nearly a third of listed financial services firms – 31% – are lagging behind the EU's forthcoming targets for gender diversity.
Commencing in June 2026, the EU will enforce a legally binding 40% quota for women on corporate boards, marking a significant step forward for gender equality, according to European lawmakers.
Omar Ali, managing partner of EMEIA financial services at EY, underscored the risk of undermining the progress achieved in recent years. He emphasized the proven correlation between boardroom diversity and enhanced performance, urging companies to prioritize gender balance.
C-suite experience emerged as the top criteria for recruiters in 2023, with female directors significantly less likely to possess such experience or hold senior board positions compared to their male counterparts. While recognizing the importance of C-suite expertise, Ali stressed the need to balance gender representation in financial boardrooms.
Ali advocated for the recruitment of directors with diverse skills and expertise, emphasizing that the 40% threshold for female representation on boards should serve as a foundation for further progress, not a final goal.
Statistics from the European Institute for Gender Equality highlight the varied representation of women across EU member states. While some countries, like Italy, the Netherlands, and Denmark, have met or exceeded the 40% threshold, others, including Hungary, Estonia, and Cyprus, lag significantly behind.
As Europe navigates toward greater gender equality in corporate leadership, the persistent gender gap on financial boards underscores the urgency for concerted efforts to promote diversity and inclusion in the workplace.
