Women on Boards: The law is here, but changes will take time

Poland has recently passed legislation to implement the European Union's "Women on Boards" directive, a move intended to enhance gender diversity within the leadership of publicly traded companies. The bill, having cleared the Senate, now awaits the president's signature. However, experts suggest that this new law will not trigger an immediate revolution in the executive ranks of companies listed on the Warsaw Stock Exchange (GPW).

While the EU directive officially came into force at the end of June, and parliamentary work on the national law concluded in early July, the practical impact on corporate boards may be gradual. Companies are expected to take time to adapt to the new requirements, with some analysts predicting that substantial changes might not be fully realized until 2027. This timeline reflects the complexities of organizational change and the need for thorough preparation.

The legislation establishes new responsibilities and gender parity targets for the largest companies listed on the GPW. Crucially, it also outlines financial sanctions for firms that fail to comply with the new regulations concerning gender balance in their governing bodies. The effectiveness of these measures will depend on how rigorously they are enforced and how companies respond to the imposed targets.

Questions linger about whether the primary obstacle to achieving better gender balance is a lack of competent female candidates or the prevailing organizational culture within Polish companies. Recent appointments, such as Diana Batko to the management board of PKN Orlen and Malwina Winter to the board of Modivo, indicate a growing awareness and effort towards increasing diversity. However, the broader challenge lies in fostering an environment where qualified women can advance to top leadership positions.