New EU Gender Balance on Corporate Boards Directive: what changes for companies from 30 June

 The EU Gender Balance on Corporate Boards Directive will enter into force on 30 June. The directive introduces binding requirements to improve gender balance in corporate leadership. Research by the leading European HR and payroll solutions provider SD Worx, based on surveys of 5,936 HR managers and 16,500 employees across sixteen European countries, shows that 42% of European organisations acknowledge a gender imbalance in senior roles.

The directive, also known as the “Women on Boards” directive, aims to address the structural under-representation of women in top decision-making roles. It applies to listed companies in the European Union with more than 250 employees and either annual revenues above EUR 50 million or a balance sheet total exceeding EUR 43 million. 

By 30 June 2026, affected organisations must ensure that at least 40% of non-executive board positions, or 33% of all board roles, are held by the under-represented sex. Today, however, 42% of European organisations acknowledge a gender imbalance in senior roles, rising to 46% among mid-sized companies with 250 to 2,499 employees. 

European Member States were required to transpose the directive into national law by 28 December 2024, and enforcement is now under way. Organisations should therefore already be assessing whether they fall within scope and whether their current board composition and succession pipelines meet the new requirements. Member States must also introduce effective sanctions for non-compliance.

Beyond numerical targets, the directive has direct implications for nomination, recruitment and governance processes. Companies must apply transparent, gender-neutral selection criteria, give preference to the under-represented sex where candidates are equally qualified, and report on board composition and progress.

For employers, the directive is not just about meeting targets, but about building a stronger and more transparent talent pipeline. Organisations can start by analysing the current gender balance within their boards and leadership teams, reviewing succession planning, and ensuring that promotion and recruitment processes are clear, consistent and gender neutral. By taking these steps now, companies not only prepare for compliance, but also strengthen their ability to attract and retain talent in a competitive labour market.

About the European survey HR and Payroll Pulse

SD Worx, the leading European provider of HR and payroll solution, supports both small and large organisations in addressing their HR and payroll challenges. To stay in touch with employers and employees, SD Worx regularly conducts in-depth surveys across Europe. The analysis of the most recent “HR & Payroll Pulse” survey offers organisations valuable insights to refine their HR and payroll strategies and make them future-proof. 

The survey was conducted between January 27 and February 20, 2026, in 16 European countries (Belgium, Croatia, Finland, France, Germany, Ireland, Italy, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden, the Netherlands and the United Kingdom) by the SD Worx Research Institute. A total of 5,936 HR decision-makers and 16,500 employees were surveyed. The results provide a representative picture of the labor market in each country.