Women in decision-making: The Norwegian Paradox

Corporate Board Quotas
As already mentioned, the legal regulation of the gender composition of corporate boards has
been a central issue in the public debate in Norway for more than a decade.
In December 2003 the Norwegian Company Act was revised, by support from the
Conservative-Centre government coalition, the Labor Party and the Socialist Left Party. From
2003 all publicly owned companies have to have at least 40 % of each gender in their
corporate boards. While the large joint stock companies were allowed some time to make
such hard demands possible. If they did not voluntary achieve the 40 % quota until July 2005,
the legal demand of at least 40 % of each gender would also apply for them. By 1 January
2008, all large joint stock companies must have at least 40% women in the boards.
It is not an exaggeration to say that the adoption of legal regulations to secure about
equal representation of men and women in the large joint stock has been controversial. No
other country has intervened into the recruitment to top positions in a similar way. The quota
procedure has however not only produced heated debate it has also produced major changes
in the gender composition of corporate boards. At the time when the issue entered the public
debate in the first part of the 1990ties, not even reliable statistics existed. The counting of
women in corporate boards indicated they there were very marginally represented by no more
than 2 to 4 % of the positions. Statistics from 2002 confirm that there were 6 % women in
corporate boards, 16 % in 2005, 30 % in 2007 and finally 36 % in 2008. Still, the gendered
composition of boards varies to a large extent, and there are 91 companies that have not
fulfilled the quota demands. So, the big issue today, is whether the government will sanction
the companies that have not filled the quota requirements.
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