The Norwegian government has proposed a groundbreaking bill that would require large and mid-sized private firms in Norway to have boards consisting of at least 40% women. This initiative aims to shatter the glass ceiling that has hindered women from reaching top positions in corporate settings.
Norway is set to become the first country in the world to introduce such a mandate. The bill, expected to be presented in the autumn, will impact around 20,000 companies operating in Norway.
Industry Minister Jan Christian Vestre announced the proposal during a news conference, emphasizing Norway’s pioneering role in promoting gender diversity in corporate leadership. Back in 2005, Norway already implemented a requirement for state-owned companies to have boards composed of at least 40% women, making it the first country to do so. The proposed bill extends this mandate to large private companies.
Under the new legislation, the government aims to gradually introduce similar regulations for large and medium-sized firms based on their sales and number of employees. The goal is to ensure that a fair policy on equality is established, leveraging the economic benefits that diverse perspectives bring to businesses.
The proposed bill will also impact mid-sized private companies with a minimum of 30 employees and annual revenues exceeding 50 million crowns ($4.7 million) once it is fully implemented by 2028.
While the bill’s objective is to foster a more equitable society, the underlying motive is primarily economic. By increasing the representation of women on boards, the government aims to unlock greater value, innovation, creativity, and tap into all available resources within society.
The proportion of women on boards in private Norwegian companies currently stands at 20%, up from 15% two decades ago. However, the pace of progress is considered slow, prompting the government to take decisive action. Minister Vestre expressed impatience with the current rate of change and emphasized the need for accelerated progress in achieving gender parity on Norwegian boards.
The government’s proposal has received support from NHO, the main Norwegian employer lobby, and LO, the primary trade union confederation. As a minority center-left government, it will require the support of other parties in parliament to pass the bill. The Socialist Left, a left-wing party that supports the government, is likely to back the proposal, increasing the chances of its adoption.
If enacted, Norway’s new gender rule for private companies would represent a significant milestone in promoting gender diversity and equal opportunities in corporate leadership, setting an example for other nations to follow in the pursuit of greater gender equality.
