Finland has long been a frontrunner in gender equality, and its corporate landscape reflects significant, albeit slow, progress in increasing female representation on company boards. Traditionally relying on self-regulation and the "comply or explain" principle of its Corporate Governance Code, Finland is now undergoing a transformation driven by new European Union (EU) legislation. This shift, formalized through domestic legal amendments and a renewed Governance Code, sets a clear and binding path toward achieving gender balance by mid-2026. While Finnish companies have achieved a relatively high share of women on boards by international standards, the progress has recently decelerated, prompting the push for mandatory targets.
The share of female executives in Finland decreased in 2024: only 37.7% of executives are women (EVA's Glass Ceiling Meter 2024). A year earlier, the figure was 38.4%. The drop is small, but the direction speaks volumes. And the direction is wrong. In Sweden, the corresponding share is already over 44%, meaning we have clearly lagged behind, even though the education and labor market structures are nearly identical. The problem is not in education, but in career paths and structures.
While Finnish companies have achieved a relatively high share of women on boards by international standards, the progress has recently decelerated, prompting the push for mandatory targets. In recent years, leading up to 2024, the proportion of women on the boards of Finnish listed companies has been approximately 31% to 33%.
Significant underrepresentation persists in the most senior roles. Women hold a notably smaller share of Board Chair positions, fluctuating around 10% to 15% in recent reports Similarly, the number of female CEO's in listed companies remains very low. Gender distribution varies widely. Large-cap companies typically have the highest percentage of women, while the ICT sector historically features the lowest female representation. The reliance on soft-law recommendations has seen Finland slip out of the top ten in the EU/EEA for female board representation, with countries implementing binding quotas, such as France and Italy, now leading. This highlights the limitations of the voluntary approach in achieving final parity.
The most significant developments in 2024 and 2025 stem from the national implementation of the EU Board Gender Balance Directive (Directive (EU) 2022/2381).
The directive's requirements, implemented via amendments to the Finnish Companies Act and the new Corporate Governance Code 2025, introduce mandatory targets for gender representation.
Implications and outlook for 2025 and beyond
The new regulatory framework signals a definitive end to the purely voluntary approach in Finland. By setting a mandatory target and requiring a justified explanation for non-compliance, the state aims to accelerate the gender diversity trajectory significantly.
Companies must now scrutinize their board compositions and recruitment processes. Given the 2026 deadline, nomination boards preparing proposals for the 2026 Annual General Meetings must actively work toward meeting the required targets.
"While quotas are effective for board seats, experts emphasize that sustained equality requires addressing the pipeline of female talent in executive management roles. Finland still ranks significantly better for women in executive leadership teams than on boards, but ensuring a deeper pool of women with senior P&L responsibility remains crucial for selecting qualified future chairs and CEOs." - Mona-Maria Ilola, Managing Director for Birn+Partners Finland
The enhanced reporting requirements in the 2025 Code will increase the public and shareholder pressure on companies, forcing greater transparency in both diversity principles and the process of board nominations.The period from 2024 to 2026 represents a pivotal transition in Finnish corporate governance, moving from a model of recommendation to one of mandatory targets and accountability, fundamentally reshaping the diversity of the nation's boardrooms. SelectionF and Birn+Partners is here to support and solve this challenge.
Sources:
/SelectionF
