Corporate Governance Trends in France

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Sustained progress and challenges in gender parity

France continues to lead Europe in gender diversity on boards. Women now hold 48% of the seats on CAC 40 boards, a slight increase from 2023. In the SBF 120, 49% of new board appointments were women, maintaining a steady gender balance. Gender parity has also been achieved in leadership roles within boards, with 47% of CAC 40 committee chairs being women. While women are more represented as chairs in committees focused on ESG matters (63%), their representation drops to only 9% on strategy committees. Additionally, only two out of 40 board chair or executive chair positions are held by women, indicating a gender gap when it comes to the chair role and more strategic oversight roles.

Women’s representation on executive committees reached 29% in the CAC 40. In the SBF 120, representation increased to 27% in 2024, up from 25% in 2022. However, women leaders are still more likely to hold primarily functional roles, such as chief human resources officer or chief marketing officer. When it comes to the top role, progress has slowed, with women holding just 9.8% of CEO positions, a decline from previous years. While the "Rixain law," which mandates 30% women representation in senior management roles by 2027 and 40% by 2030 for companies with over 1,000 employees, is expected to drive progress, more efforts are needed to close the gender gap at the highest leadership levels.

Acceleration of internationalization in governance

France is witnessing an increasing trend of international profiles in leadership roles, reflecting the global nature of its leading companies. In the SBF 120, 22% of CEOs have a foreign passport, compared to 7% in 2021-2022. This trend extends to executive committees, where 46% of new appointments in 2024 were to individuals with foreign passports. This shift indicates the growing demand for global expertise in navigating today’s interconnected business world. International directors are also in high demand. In 2024, 32% of new board appointments in the SBF 120 had an international passport, with other Europeans leading the way, followed by North Americans and Asians. Among these, 73% were independent directors. Experts suggest that this board globalization aims to support the global competitiveness of French companies and position them to better manage the complexities of the global market.

Continued emphasis on ESG and building AI fluency

French boards are navigating increasingly complex demands from shareholders and stakeholders, further exacerbated by geopolitical instability, rapid AI advancements, and heightened sustainability expectations driven by the EU's Corporate Sustainability Reporting Directive (CSRD), effective from 2024.

ESG remains a key priority for French boards. In 2024, 83% of SBF 120 companies have dedicated ESG committees, a notable increase from 73% in 2023. The CSRD is also driving deeper integration of sustainability into corporate strategy. This directive imposes new reporting standards, significantly influencing how environmental and social issues are addressed. In response, 17% of SBF 120 companies are offering CSRD-specific training for board members, underscoring the growing importance of sustainability oversight at the governance level.

AI is increasingly becoming a critical focus for boards, with French executives viewing it as a driver of productivity, job creation, and organizational performance. However, RRA’s Global Leadership Monitor found that only 28% of directors agree that their organization’s board has sufficient expertise to advise on generative AI. To address this, more boards are incorporating AI expertise into their recruitment strategies – but rather than hiring dedicated AI experts, most are seeking leaders with experience in business transformation. Nevertheless, some companies have opted to appoint AI specialists. In 2025, as AI adoption continues to increase, French boards will need to stay abreast of applicable AI laws and regulations (such as the EU AI Act, which came into force in August 2024) to ensure compliance, as well as the development of policies, information systems, and internal controls for its application.