Overview of diversity imbalance on boards of European and American listed companies and possible remedies

This article discusses possible means for addressing the documented lack of diversity on board of directors of listed companies in the European Union and the United States. The lack of diversity is typically assessed through three categories: gender diversity, racial/ethnic diversity and sexual orientation diversity. Until recently, efforts to improve diversity have focused solely on gender diversity but further expansion towards other categories is imminent. This article documents and assesses the main methods used to influence diversity: self-regulation, soft law, regulations from stock exchanges, and hard law in the form of either mandatory quotas or disclosure obligations assorted with heavy sanctions. It takes a critical approach to quota-based laws and regulations from the perspective of the principle of equality and the law on positive discrimination.