82 Supervisory board members are supposed to leave
The Frankfurter Allgemeine Sonntagszeitung article, “82 Supervisory board members are supposed to leave,” quoted Russell Reynolds Associates’ Consultant Jens-Thomas Pietralla on gender diversity on German boards. The article is excerpted below.
Power in German supervisory boards is concentrated in the hands of too few men. That is the conclusion of a study by the personnel consulting firm Russell Reynolds. Thus the share of women in the new occupancy of seats in Dax-30 businesses has fallen to 23 percent, which is the lowest level since the year 2010.
At the top levels of the companies, men continue to dominate, all protestations to the contrary notwithstanding. “Seven companies in the Dax still have a purely male management", states Jens-Thomas Pietralla of Russell Reynolds, and that the dynamic of the growth of the share of women has come to a standstill. He sees it as a positive that the linkages of the supervisory boards of the Dax-30 companies with each other have lessened significantly.
All supervisory board members must, however, reduce the number of their commissions, if they want to comply with the recently issued “Corporate Governance Code". That would cause a great stir in the German supervisory boards, states the study. Thus, a total of 82 supervisory board members in Dax companies would have to resign their offices, “which would have enormous explosive power". The companies also differ greatly in paying their supervisory board members. At the very top is the storm-tossed Deutsche Bank. There, a supervisory board member receives six times that of a Merck supervisory board member. The average compensation for supervisory board members of Dax companies is 191,000 Euro, which constitutes an increase of seven percent over the previous year.