“Parity is a long way off”
The proportion of women in management levels is hardly increasing
January 5, 2024, 10:10 a.m
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Since lawmakers have called for greater equality between men and women, there have been positive changes in the management levels of German companies. The proportion of female managers on company boards and supervisory boards has been growing continuously since 2015. But the pace is slowing.
According to a study, women have recently made little progress in the top echelons of German stock market heavyweights. According to an evaluation by the organization “Women on Supervisory Boards” (FIDAR), the enthusiasm for increasing the proportion of female managers on supervisory boards and executive boards has waned. “The goal of parity is still a long way off and can hardly be achieved given the current rate of change,” said FIDAR founding president Monika Schulz-Strelow.
The 160 companies in the DAX family as well as 19 other listed and co-determined companies were evaluated. Accordingly, the proportion of women on supervisory boards grew by 1.2 percentage points from 35.3 percent between the last evaluation at the end of May 2023 and January 1, 2024, to an average of 36.5 percent. An increase was recorded on the boards of directors from 18.3 percent to 18.9 percent. “The ball is in the companies’ court to shape change,” warned Schulz-Strelow. “If they don’t take it up, the legislature will act and expand or further tighten the legal measures.”
Quota for women on supervisory boards works
According to the evaluation, legal regulations are having an impact. The proportion of women on supervisory boards and executive boards is significantly higher in those companies for which a 30 percent quota is set for the composition of the supervisory board. Currently, 100 listed and co-determined companies fall below the quota. According to the information, the proportion of female top managers on the control committees at the turn of the year was 38.1 percent and on the boards 20.6 percent.
However, fewer female managers made it to the top floors of the remaining 79 companies that do not fall under the quota. The proportion of women on the supervisory boards was 31.6 percent and on the executive boards 16.2 percent. The figures once again show that voluntary forms of self-commitment are only being used insufficiently in Germany, the study said.
FIDAR expects more commitment to equality
In addition to the quota for the supervisory board, listed companies with equal co-determination with more than 2,000 employees and more than three board members must also ensure that there is at least one woman in the management team when appointing new members to the board. According to FIDAR, 60 companies currently fall below the minimum board participation requirement. The proportion of female managers on the board of directors (22 percent) and supervisory board (37.4 percent) is above the average values of the 179 companies examined.
FIDAR expects significantly more commitment from companies overall. “In addition to setting targets for the supervisory board, executive board and the first and second management levels, this also includes a binding strategy for all management levels in order to implement equal participation,” demanded FIDAR President Anja Seng.