The government in the Netherlands is working on a proposal (in Dutch) to introduce a 30% mandatory quota, to be implemented in stages, for both women and men on supervisory boards at Dutch listed companies. The proposal is currently expected to be sent to the Dutch Council of State for advice in the second quarter of this year. If, following the appointment of a supervisory or non-executive director, the 30% gender balance at a listed company has not improved, the appointment will be declared null and void and the vacancy will remain unfilled. "Listed companies" in this regard are Dutch NVs or BVs listed on a stock exchange, irrespective of whether that exchange is located in the Netherlands or abroad. This extends the scope of companies that will need to keep a close eye on this development and start preparing gender balance policies.
Additional targets for "large'' companies
All listed and non-listed Dutch large NVs and BVs – around 5000 – will also have to set ambitious gender balance targets, for both the boardroom and senior management level. If a large company is listed, these targets will not apply to the supervisory/non-executive directors, as they are already covered by the mandatory 30% quota. By setting targets for the senior management level, the company can expand its talent pool of board-ready women. Large companies will have to account for achieving these targets in their annual reporting, by clarifying, in the case of deviation, why they have not met a target and by explaining how they intend to remedy this.
An NV or BV qualifies as large if it fulfills at least two of these criteria:
- The value of the assets according to the balance sheet with explanatory notes exceeds EUR 20 million
- The net turnover for the financial year exceeds EUR 40 million
- There are, on average, 250 or more employees at the company during the financial year.