More women on the boards of Finnish listed companies meet gender equality goal

The number of women on the boards of listed companies has been monitored by the Central Chamber of Commerce for several years, based on the composition of boards appointed at the general meetings of shareholders. Nearly half of the companies that have been listed for gender equality have already met the target of gender equality when looking at the data for 2022 and all listed companies.

Only 16 of the 130 listed companies surveyed would have been outside the scope of the EU's quota directive, which will take effect in 2026. More than half of the companies that fall under the directive already meet the goal of equal representation of men and women in boards and supervisory boards, as proposed in the directive.

Self-regulation is a key factor in the promotion of women's leadership in Finland. A climate must be created that encourages women to advance in their careers. According to Ville Kajala, the central chamber of commerce's leading expert, says it is important for companies to pay attention to women's career paths so that they lead to business leadership positions and CEO positions instead of support functions.

The recommendation of the Corporate Governance Code, which specifies that the board of a listed company should include both genders, is credited with the increase in the proportion of women on boards. If a listed company does not follow this recommendation, it must justify the deviation publicly.

The gender balance of the body responsible for preparing the proposal for the board's composition also matters, according to the Central Chamber of Commerce's report.

The survey showed clear differences. In companies where the proposal for the board's composition was prepared by a shareholder's committee, and the committee included at least one woman, women accounted for as much as 40% of board members. Kajala said that when the nomination committee consisted only of men, the proportion of women on the boards was 31%.

In around 30% of the listed companies, there is a balanced gender distribution in executive management teams. When the less represented gender accounts for at least 40% of the team, equal representation of men and women is said to be achieved.

The report's findings indicate progress has been made, but there is still a long way to go to achieve gender equality in leadership positions. Diversity should be paid more attention when it comes to selecting board members and recruiting executive team members. A supportive environment for women is crucial for women's advancement in their careers, as stated by Ville Kajala on International Women's Day.