New rules to ensure better gender balance in management

On 1 January 2025, new rules on gender balance in management came into force. The new rules apply to listed companies with more than:

• 250 employees
• 50 million euros in annual turnover
• An annual balance sheet of 43 million euros

Companies that meet these requirements will have to ensure that there is an equal gender balance in their management. This is the case if at least 40% of management consists of the underrepresented gender but does not exceed 49%. Among other things, the rules mean that:

• Companies must have a target for gender balance in either their executive board, board of directors or supervisory board
• The board of directors or executive board must set targets for the proportion of the underrepresented gender at the other management levels unless there is already an equal distribution. When the company achieves the target figure or when the time limit for the target figure expires, it must set a new higher target figure
• The board of directors or executive board must have a policy for equal gender distribution at other management levels

Companies that do not have gender balance in the board of directors, executive board, or supervisory board by 30 June 2026 must establish or adjust the process for how the company selects candidates for the executive board, board of directors, or supervisory board.

Skills such as experience, knowledge, and networking can be emphasised when establishing selection procedures. The criteria will ensure that the selection is neutral and objective in the future.

IUNO’s opinion

Large companies have already had to set targets for gender balance in management, and the new rules do not change the requirement for executive boards. They do, however, oblige companies to create systems, processes, and policies to achieve gender balance at the top and other management levels.

IUNO recommends that companies now assess whether they fulfil the new requirements for gender balance in management. Companies that do not fulfil the requirements should adapt their requirements and policies to clarify them and ensure that the best candidates are selected.

[L 61 Act on gender balance among management members in certain large listed public limited companies of 12 December 2024]