Boardroom Quotas in France: Tromp l’Oeil Effects at Work

Starting in January 2017, firms with more than 50 employees and more than 50 million euros (CAC40) in profit will be required to have at least 40% women on their corporate board. Studies show that since the adoption of the law in 2011, the percentage of women on boards has tripled from 10% in 2009 to 34% in 2015. This significant overall increase in numbers covers-up, like a tromp l’oeil effect in painting, a less promising trend. In reality, although the quota law has elevated France to the level of a high performer among European Union members in the largest businesses, the careful examination of the implementation of the 2011 law, which we will do in this paper, shows mixed results. First, the advancement of women on boards has stagnated. According to a recent evaluation, 1300 board positions still need to be filled by women. Companies have also developed strategies to bypass the law; i.e.., reducing the number of board members to increase the percentage of women members and developing more informal venues outside of the boards to make key business decisions. Next, progress of women on boards masks the persistence of strong disparities between different size firms – in medium size companies, the rate of women on boards has fallen to 14% -- and in the different types of board positions filled. In June, 2014, women in large companies and women were not able to gain access to the more strategically key administrative committees in these firms. Finally, more generally, the 2011 law stipulates that corporate boards must initiate measures to promote gender equality in the firms. Our study of three firms will show that corporate boards do not pursue in a meaningful manner the broader policies that promote gender equality in the workplace required by the law.