3.3 Diversity
For listed companies above a certain size, Swiss law imposes gender quotas for the board of directors and executive management. This applies to companies if they exceed the thresholds set in Art. 727 para. 1(2) CO, i.e., if in any two consecutive financial years, they meet two of the following three criteria:
| (i) | total assets of more than CHF 20 million; |
| (ii) | sales revenue of more than CHF 40 million; |
| (iii) | an annual average of at least 250 full-time employees (FTEs). The quotas for the underrepresented gender (typically women) are 30% for the board of directors and 20% for the executive management. |
If a company does not meet either quota, it must disclose the reasons for non-compliance in the remuneration report, along with the measures implemented to promote the underrepresented gender (“comply-or-explain” principle).
Swiss law allows long transition periods before these gender quotas take effect (until 2026 for the board of directors and 2031 for the executive management). However, proxy advisors expect companies to already comply with the quotas.