Norway faces the "D-Day" regarding the 40% female representation quota on governing boards.

With only a few days left until 2025, Norwegian companies are accelerating their recruitment processes to ensure that at least 40% of their executives are women. Otherwise, the offending company will be shut down.

Norway was the first country in the world to set a standard of 40% female representation on the boards of directors of listed companies in 2005, in an effort to break down barriers preventing women from reaching top positions in businesses.

In late 2023, a law was enacted requiring no more than 60% of the board of directors to be of one gender. In practice, this often means ensuring at least 40% of executives are women.

Minister for Trade and Industry Jan Christian Vestre declared: "This is a milestone for equal opportunities in business in Norway. We are the first country in the world to do this."

Mr. Vestre stated that this effort is based on the government's ambition to create a fair policy on equality and promote women's economic development. This will generate more value, innovation, creativity, and the utilization of all resources in society. This will not only ensure greater gender balance but also have a very positive impact on company revenues.

Therefore, approximately 8,000 companies in Norway will have to ensure compliance with regulations regarding the proportion of women on their boards of directors by December 31, 2024, or face closure. In the first year, the law will only apply to the largest companies with revenues exceeding 100 million NOK (8.8 million USD).

According to government figures, this means that around 5,000 more women will be joining boards of directors in the coming days. "Many companies have been rushing in the past few months," said Hege Rodland, founder of Matae AS, a company that works on strategy and recruitment.

According to Ms. Rodland, having women on board of directors would broaden discussions and ensure better decision-making. Women are generally better prepared for meetings. Requirements for gender representation help ensure equality and diversity, and ultimately create gender balance in the management of Norwegian companies.

The Norwegian business sector will need to adapt more than ever to the rules governing the use of collective capacity in society. Companies will eventually change, even if they are reluctant to comply. Companies will gradually realize the benefits of diversity.

According to estimates by the Norwegian Business Association (NHO), the law will apply to approximately 20,000 companies by 2028. The government has calculated that an additional 8,000 women will be needed to lead businesses by that year.

Na Uy trước — Women on boards of directors

One company making efforts to train women for leadership positions is DNB Bank ASA, Norway's largest bank. Chief Financial Officer Ida Lerner said it's no coincidence that women hold top positions at the company.

The bank is focused on ensuring there is always a pool of qualified women ready to step up, and equality needs to be at the top of the agenda. "Once you stop participating in this, you fall behind," Ms. Lerner said.

The implementation of the standard of 40% female representation on company boards will be carried out in 5 phases over a period of 4 years:

- Phase 1: Companies with total operating and financial revenue exceeding 100 million NOK (8.8 million USD) must complete the process no later than December 31, 2024.

- Phase two: Businesses with more than 50 employees, housing cooperatives and associations with more than 500 members, and unit owners, organizations engaged in or intended for distribution must comply no later than June 30, 2025.

- Phase three: Businesses with more than 30 employees must implement this no later than June 30, 2026.

- Phase four: Businesses with total operating and financial income exceeding 70 million NOK must comply no later than June 30, 2027.

- Phase five: Businesses with total operating and financial income exceeding 50 million NOK must complete the process by June 30, 2028.

Violations of the rules can have serious consequences for the companies themselves and their partner contractors. In extreme cases, violations of the requirements can lead to the forced dissolution of the companies.

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