Austria: government introduces quota of 35% of women on the boards of public companies

“It may only be an Austrian-style solution but it’s a good compromise” declared social-democratic Minister for Women Gabriele Heinisch-Hosek when presenting, on Tuesday, March 15, 2011 in Vienna, the agreement signed with conservative economy Minister Reinhold Mittellehner on the issue of quotas of women at the heads of businesses.  The Minister was probably referring to the difference between her original claims (40% of women on the boards of all large businesses) and the compromise reached.  This measure concerns 55 public and comparable businesses.  The imposed increase is 25% by 2014 and 35% by 2018.  Each year, these companies will have to report on their progress.  This quota only concerns shareholders’ representatives who occupy, in accordance with Austrian co-management regulations, two thirds of the seats.  The measure doesn’t concern staff representatives for two reasons: a) women already account for 50% of them, as opposed to shareholders’ representatives, and b) they are elected by WC members.  “We could hardly impose this commitment within the framework of democratic elections” explained Bernhard Achitz, secretary of the Confederation of Austrian Unions (ÖGB).  Currently, 10.3% of the members of the boards of the 200 largest companies in Austria are women.  Mr. Mittellehner, who notably defended the lack of sanctions for failure to comply with the quotas, said that this measure was going to be a trigger for the number of women at the heads of businesses.  “I think that, once male networks are broken, there will also be more women with senior positions” he declared.