It is not unusual for even large corporate boards to have no women or minorities

Question

It is not unusual for even large corporate boards to have no women or minorities on them. In the US, women held 16 percent of board seats at Fortune 500 companies in 2012. In her 2013 book, Lean In, Sheryl Sandberg points out that this number has been flat for 10 years— or, as she puts it, there has been no progress in the past 10 years. In Europe, of the total number of board members in Britain, only 12 percent were women; Spain, France, and Germany all had less than 10 percent. In Norway, by contrast, female members comprised 40 percent of the boards.

So how did Norway do it? In 2005, the government of Norway gave public firms two years to change their boards’ composition from 9 percent female to 40 per-cent female. Is this a good idea? Spain, Italy, France, and the Netherlands must think so: Each country is considering implementing a similar quota (though generally with more than two years to implement it).

Questions

c. Would a regulatory quota be a good solution? Why or why not?

Explanation / Answer

Yes regulatory quota will be good solution as a fixed percent of seats will be there for women which will give the opportunity to women . Women can play a major part in the board and can claim their share. Hence it is a good solution.

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