“I am convinced that the adoption of this law will benefit Icelandic society and industry. An increased number of female managers
in the industry will create greater growth, improved business and increased gender equality,” the Icelandic Minister for Gender
Equality, Árni Páll Árnason, says.
The 4th March the Icelandic parliament adopted a legislative reform to promote gender equality in the boards of publicly owned
companies (ohf.*) and public limited companies (hf.) having at least 50 employees. Boards composed of more than three persons
must consist of at least 40 per cent of each gender by September 1st 2013.
Moreover, companies with 25 or more employees are required to disclose the number of men and women employed as well as the
number of men and women in management positions.
32 out of 63 MPs of all parties, except the conservative Independence Party, voted for the bill. Eleven MPs abstained from
voting.
Direct intervention
At the Nordic conference on gender and power in November 2009 the Icelandic Minister for Gender Equality said that a quota law will have to be introduced if the companies
fail to present gender equal boards after their general assemblies in the spring. He now points out that all possibilities
have been exhausted when it comes to correcting the gender balance in the business community, except for direct intervention.
“In autumn 2009, I expressed my concern about the failure to influence the proportion of women on boards in a positive direction,
despite the clear provisions in existing laws and guidelines. I said then that if there was no significant change, it would
be inevitable to avoid direct intervention by imposing a law on gender quotas on the boards of publicly owned and public limited
companies,” says Árni Páll Árnason.
“Now this law has become a reality, which implies that companies must meet the goal of a gender equal composition of boards
by 1st September 2013. That should provide a reasonable period of time for companies to act. Before the bill was adopted,
the Employers' Association responded by encouraging company owners and leaders to increase women's participation in business,
as they found this both necessary and reasonable. I am convinced that we will soon see major improvements,” the Minister concludes.
