Supervisory Boards: More Digital Experts, more Foreigners, more Money
Russell Reynolds Associates’ Consultant Thomas Tomkos is quoted on executive pay and digital expertise on boards, in the Dpa AFX article, “Supervisory Boards: More Digital Experts, more Foreigners, more Money.” The article is excerpted below.
Increasingly more digital experts and more foreigners are moving into the supervisory boards of large German companies – and the payment for the supervisors is increasing substantially. These are the results of a study by the New York personnel consulting firm Russell Reynolds Associates, which was published on Sunday.
"The average compensation of a supervisory board member of a DAX company amounted to 191,000 Euro, an increase of 7.3 percent over the previous year", calculated the personnel consultants. The best paid were the supervisors of the Deutsche Bank. The distance to the heads of the executive boards is, however, large: "A CEO receives an average of 14 times as much as the chairman of a supervisory board."
It is reported that in the shareholder meetings this year, ten computer professionals were elected to supervisory boards. "More than two thirds of the DAX-30 companies now have digital experts in their supervisory body" – clear progress, reported the consultants in praise.
According to the study, the share of foreigners in supervisory boards rose from 28 to 30 percent, the share of women to over 32 percent. With the election of Martina Merz as supervisory board chair of Thyssen Krupp and Simone Bagel-Trah at Henkel there are now two women among the 30 supervisory board chairs. And of the 132 committee chairs, there are now 17 women, six more than in the previous year.
The linkages of the DAX-30 companies via supervisory boards decreased sharply: Only seven companies are related to five or more DAX-30 companies via their supervisory boards – but seven companies have no connection at all to the supervisory boards of other concerns. "The cross-relationships that used to be criticized as Deutschland Inc. no longer exist like that", stated the Russell Reynolds German head, Thomas Tomkos.
The accumulation of offices has also declined, it is reported: Only six supervisory board members have more than two offices.