Nasdaq Reveals a Surprising Development in Swedish Boardrooms

(Bloomberg) -- Sweden is usually considered a pioneer in sex equality. It turns out its corporations have become a bit complacent of late, and are starting to fall behind on a key metric.

Companies in the largest Nordic economy aren’t the trailblazers they once were in ensuring women have equal access to boardroom seats, according to Fredrik Ekstrom, who runs Nasdaq Inc.’s stock exchange in Stockholm.

Fifteen years after the government first set a target to have 40% of corporate boardrooms filled with women, that goal still hasn’t been met.

Over the past 10 years, the development was “good,” Ekstrom said on a webcast panel discussion hosted by Nasdaq and the Swedish House of Finance. But more recently, progress has “become slower,” and last year, “it was even reversed in some areas.”

“It’s time to get some more momentum to this,” Ekstrom said.

Sweden has so far resisted forcing companies to promote women to its top ranks. In France and Norway, binding quotas oblige corporations to meet a 40% threshold.

Research shows that simply by threatening to impose quotas, politicians have pushed Swedish companies to appoint more women. The country’s corporate governance code tells companies to strive for gender balance at the board level.

Companies traded on Nasdaq Stockholm agree that more needs to be done.

“Unfortunately I think in Sweden we haven’t come as far as we believe we have come,” said Selina Millstam, head of global talent management at mobile networks maker Ericsson. “I still see that we’re struggling with updating our policies, updating the consequences in our society and updating culture in general in organizations around that inclusiveness that’s necessary, not only for women but all minorities across Sweden.”

It’s one thing to appoint women, but making them feel that they are fully-fledged members of their organizations is another matter, said SEB AB’s chief inclusion and diversity officer, Maria Hamstedt.

“You might be in a position, but are you really included? Or are you in the succession for the next position,” she asked. “I’m not really sure that Sweden is so much ahead when it comes to actually including women.”

Still, Sweden’s example is being held up as a model, even by Ekstrom’s boss. Nasdaq Chief Executive Officer Adena Friedman said the exchange operator’s proposal to require more diversity on boards models the Swedish approach of comply or explain.

Read more: Nasdaq Joins Goldman in Corporate Push for More Diverse Boards

“We have an opportunity in the U.S. to take the lessons of Sweden and try to apply them through the Nasdaq proposal,” she said on the webcast. “To get to 40% is quite a long way, the U.S. is much further behind.”

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