29th April 2025
At least one-third representation of the underrepresented gender in company management bodies – this is the ambitious target now facing big Lithuanian companies that meet the criteria set by law. The Gender Balance on Corporate Boards Directive, transposed into Lithuanian law, came into force last year. Companies are required to report their compliance with gender balance requirements to the Office of the Equal Opportunities Ombudsperson by early June.
Gender Quotas Officially Introduced for the First Time
“The glass ceiling is cracking – gender balance in corporate boards is no longer just a recommendation, but a legal obligation,” says Rusnė Kirtiklytė, an expert at the Office of the Equal Opportunities Ombudsperson. According to her, this change represents a new approach to corporate governance: it’s not just a legal duty, but also a chance to strengthen a company’s reputation, become a more attractive employer, and contribute to building a more sustainable labor market.
“It’s no secret that women are often underrepresented on boards and supervisory councils – not only in Lithuania but across Europe. According to the latest data from the European Institute for Gender Equality, women hold just 27 % of board seats in publicly listed companies in Lithuania, while the EU average is 34 %. And that’s just for the largest, listed companies. What the numbers look like for other large enterprises, we’ll find out once data collection is complete,” says R. Kirtiklytė.
Rusnė Kirtiklytė. Marius Morkevičius photo.
What Exactly Will Companies Need to Do?
The directive stipulates that by June 30, 2026, the underrepresented gender must comprise at least one-third between 33 % and 49 % – of the members of company boards and supervisory councils. This will push companies to revisit their recruitment procedures and build governance structures that better reflect the diversity of society.
The first set of data on progress toward these goals must be submitted to the Office of the Equal Opportunities Ombudsperson by June 1, 2025, via a designated reporting form.
The requirements apply to companies meeting at least two of the following criteria: more than 250 employees, more than €50 million in annual revenue, and / or more than €25 million in total assets listed on the balance sheet. Based on these criteria, over 300 companies in Lithuania could be affected.
After reviewing the reports, the Office of the Equal Opportunities Ombudsperson will publicly announce the list of companies that meet the Directive’s targets. Companies that fall short will receive recommendations on how to improve their processes. In exceptional cases, penalties may be imposed.
Support and Guidance Will Be Provided
“This reform creates opportunities to build more balanced, diverse, and resilient leadership teams. We encourage companies to see this as a chance to grow, strengthen their image, and foster an environment where talent matters more than stereotypes,” says R. Kirtiklytė.
She emphasizes that companies will not be left on their own – informational events, consultations, and training will be provided to support efforts to attract members of the underrepresented gender to boards or supervisory councils, and to help companies set effective recruitment criteria.