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| Germany Planning Quotas for Women in Boardrooms | |
| (37 minutes later) | |
| BERLIN — Germany’s coalition government pledged Wednesday to introduce a bill mandating quotas for women on the supervisory boards of the country’s top companies, after a feud erupted this week when a leading conservative lawmaker told the minister of family affairs, a woman, to “stop whining” about the proposal. | BERLIN — Germany’s coalition government pledged Wednesday to introduce a bill mandating quotas for women on the supervisory boards of the country’s top companies, after a feud erupted this week when a leading conservative lawmaker told the minister of family affairs, a woman, to “stop whining” about the proposal. |
| Chancellor Angela Merkel, who is widely seen as the world’s most powerful woman but is ambivalent about compulsory quotas, pledged this fall that they would be introduced, sweeping aside criticism from a coalition party, the Christian Social Union, that the move would be costly and hurt German companies at a time when economic growth was slowing. | Chancellor Angela Merkel, who is widely seen as the world’s most powerful woman but is ambivalent about compulsory quotas, pledged this fall that they would be introduced, sweeping aside criticism from a coalition party, the Christian Social Union, that the move would be costly and hurt German companies at a time when economic growth was slowing. |
| Ms. Merkel’s government, composed of center-right and center-left parties, called for quotas in a lengthy coalition agreement last year. Nevertheless, Germany has yet to join eight other European Union countries, including France, Italy, Spain and the Netherlands, in adopting quotas for women on corporate boards. | Ms. Merkel’s government, composed of center-right and center-left parties, called for quotas in a lengthy coalition agreement last year. Nevertheless, Germany has yet to join eight other European Union countries, including France, Italy, Spain and the Netherlands, in adopting quotas for women on corporate boards. |
| Ms. Merkel said a bill requiring that women make up at least 30 percent of the nonexecutive members of each supervisory board, beginning in 2016, will be introduced in Parliament on Dec. 11, where it is virtually assured of passage. The law would cover about 100 companies. | Ms. Merkel said a bill requiring that women make up at least 30 percent of the nonexecutive members of each supervisory board, beginning in 2016, will be introduced in Parliament on Dec. 11, where it is virtually assured of passage. The law would cover about 100 companies. |
| Collectively, women now account for 22 percent of nonexecutive positions on the boards of the 30 companies listed in Germany’s DAX stock market index. | Collectively, women now account for 22 percent of nonexecutive positions on the boards of the 30 companies listed in Germany’s DAX stock market index. |
| If companies fail to meet the requirement, vacant posts will stay empty until women are found to fill them, said Manuela Schwesig, the family affairs minister and a Social Democrat. “That is a very tough sanction,” Ms. Schwesig said, adding that fines are not as effective because companies can easily absorb them. “I am sure that in the end no chair will remain vacant, because there are enough women who are qualified to do exactly these important jobs.” | If companies fail to meet the requirement, vacant posts will stay empty until women are found to fill them, said Manuela Schwesig, the family affairs minister and a Social Democrat. “That is a very tough sanction,” Ms. Schwesig said, adding that fines are not as effective because companies can easily absorb them. “I am sure that in the end no chair will remain vacant, because there are enough women who are qualified to do exactly these important jobs.” |
| Ms. Schwesig came under attack on Tuesday from Volker Kauder, leader of the parliamentary faction of Ms. Merkel’s Christian Democrats and their Bavarian partners, who told the news media: “The families minister should stop whining and get on with implementing the coalition agreement.” | Ms. Schwesig came under attack on Tuesday from Volker Kauder, leader of the parliamentary faction of Ms. Merkel’s Christian Democrats and their Bavarian partners, who told the news media: “The families minister should stop whining and get on with implementing the coalition agreement.” |
| Sigmar Gabriel, Germany’s vice chancellor and a Social Democrat, shot back, “If the bill touches a nerve with men then it is the men who have a problem.” | Sigmar Gabriel, Germany’s vice chancellor and a Social Democrat, shot back, “If the bill touches a nerve with men then it is the men who have a problem.” |
| Yasmin Fahimi, general secretary of the Social Democrats, said Mr. Kauder “used unspeakable macho language.” | Yasmin Fahimi, general secretary of the Social Democrats, said Mr. Kauder “used unspeakable macho language.” |
| Women are still absent from some areas of the German economy, especially big business, despite concerted efforts by leading companies like Deutsche Telekom to promote them. The belief that women should worry about children, cooking and church still holds sway, particularly if families can afford to live on one salary. In western Germany, many schools are in session until lunchtime, when children return home, making it hard for mothers to work. In the formerly Communist east, kindergartens and child care in general are more likely to be provided by the state. | Women are still absent from some areas of the German economy, especially big business, despite concerted efforts by leading companies like Deutsche Telekom to promote them. The belief that women should worry about children, cooking and church still holds sway, particularly if families can afford to live on one salary. In western Germany, many schools are in session until lunchtime, when children return home, making it hard for mothers to work. In the formerly Communist east, kindergartens and child care in general are more likely to be provided by the state. |
| Ms. Schwesig told the Deutschlandfunk radio station on Wednesday that the new law “is an important step for equal rights because it will introduce a culture shift in the work world.” | Ms. Schwesig told the Deutschlandfunk radio station on Wednesday that the new law “is an important step for equal rights because it will introduce a culture shift in the work world.” |
| Heiko Maas, the minister of justice and a Social Democrat, expressed confidence that women would now join German boards. “The story that there are not enough women can really only be told to people who have remained spiritually stuck in the last century,” he said on ZDF television. | Heiko Maas, the minister of justice and a Social Democrat, expressed confidence that women would now join German boards. “The story that there are not enough women can really only be told to people who have remained spiritually stuck in the last century,” he said on ZDF television. |
| While the United States has avoided mandating diversity quotas for executive boards, there is general acceptance that women, including mothers, often have to work. In Britain, companies are urged to ensure board diversity but there is no mandate to do so. | While the United States has avoided mandating diversity quotas for executive boards, there is general acceptance that women, including mothers, often have to work. In Britain, companies are urged to ensure board diversity but there is no mandate to do so. |
| Norway was the first European country to impose quotas, and France mandates that 20 percent of nonexecutive director positions go to women, rising to 40 percent by 2017. | Norway was the first European country to impose quotas, and France mandates that 20 percent of nonexecutive director positions go to women, rising to 40 percent by 2017. |
| The share of women on the boards of the 40 companies in France’s CAC 40 stock index more than doubled to 29.7 in October 2013, from 12.3 percent three years earlier. The 28-member European Union is aiming for 40 percent female nonexecutive board membership by 2020. | The share of women on the boards of the 40 companies in France’s CAC 40 stock index more than doubled to 29.7 in October 2013, from 12.3 percent three years earlier. The 28-member European Union is aiming for 40 percent female nonexecutive board membership by 2020. |