Many Companies Rushing to Meet New Gender Balance Rules for Boards
As the January 1, 2025 deadline approaches, many companies are scrambling to meet new gender balance rules for their boards of directors. The new regulations require that all companies with annual revenues exceeding 100 million Norwegian Kroner (around 8.8 million Euros) have at least 40% of each gender represented in their boards.
NorgesGruppen Among Companies Making Changes
Among the companies affected is NorgesGruppen, one of Norway’s largest retail groups. The company has reportedly replaced the entire board in 99 of its subsidiaries, including Kiwi, Meny, and Asko, since the new law was introduced a year ago. This represents nearly a third of the company’s total subsidiaries.
"Our approach has been to take this seriously, not just to Fill quotas," said Dina R. Thune, HR Director at NorgesGruppen. "We’ve used this as an opportunity to drive competency building and renew the competence in our boards."
Many Companies Still Out of Compliance
An analysis by E24, a Norwegian news platform, suggests that many companies are still out of compliance with the new rules. Out of the approximately 3000 companies reviewed, 49% had too many men on their boards, while only 1% had too many women.
"The deadline is coming fast, and many companies may not have time to adjust their board compositions before it’s too late," said an E24 spokesperson.
Reitan AS Looks to Next Generation
Reitan AS, Norway’s largest grocer, is one company that has managed to address the issue in time. With only three men and one woman on their board as of December, they are not currently in compliance with the new rules. However, Sunniva Reitan, the daughter of the company’s top executives, will join the board as of January 1, 2025.
"This has been long planned, and it also helps with gender balance, which we see as a positive," said Nils Vibe-Rheymer, the company’s communications manager.
Further Phases of Implementation
The current regulations are just the first step in a multi-phase implementation process. By 2028, companies with revenues exceeding 50 million Norwegian Kroner (around 4.4 million Euros) will also be affected.
The Norwegian government has stated that the goal of these regulations is to increase diversity and strengthen the competence of boards of directors. Only time will tell if these new rules will lead to the desired outcomes.
