Women are increasingly stepping into leadership roles within DAX-listed companies, with their representation on boards rising to over 25%. However, they tend to leave these positions earlier than men. A study reveals that while female board members average 53 years at departure, males typically exit at 58. Despite progress, the overall number of board changes has declined, coinciding with the introduction of legal mandates promoting gender diversity. Additionally, demand for CFOs is outpacing that for CEOs.
Women Rising in DAX Leadership Roles
The presence of women in executive positions within DAX-listed companies has seen a noteworthy increase, now surpassing 25 percent. However, a recent evaluation indicates that these women tend to leave their roles more frequently than their male counterparts.
Women are progressively making their mark in high-level positions across the German business landscape. According to a study conducted by the personnel consultancy Russell Reynolds, the percentage of women on the boards of DAX companies has climbed from 23 percent to over 25 percent in the past year. Notably, for the first time, three DAX companies are under the leadership of female CEOs: Bettina Orlopp at Commerzbank, Karin Rådström at Daimler Truck, and Bélen Garijo at Merck.
The Gender Gap in Executive Tenure
Since 2020, the representation of women in top management roles among Germany’s largest public firms has surged from 13 to 25 percent. Last year alone, eleven women were appointed to DAX company boards. An analysis by ‘Frauen in die Aufsichtsräte’ (Fidar) corroborated these findings, revealing that over a quarter (25.7 percent) of board members are now women, a slight increase from 23.5 percent in a prior study and a record high since Fidar began its assessments in 2011.
Despite these advancements, a troubling trend has emerged: women are exiting their positions significantly earlier than men. The Russell Reynolds study noted that five female board members left their roles last year, all within a maximum of three years in office, with none transitioning to new executive positions. In contrast, men generally remain on the board until an average age of 58, while women tend to depart at 53.
Commerzbank and Siemens Healthineers boast the highest female representation on their boards at 50 percent, with another ten companies exceeding 33 percent. Porsche SE stands out as the only DAX company without a female board member. The trend extends to supervisory boards, where the female quota has reached 39.7 percent, reflecting a rise of just over one percentage point since January 2024.
In terms of compensation, DAX, MDAX, and SDAX board members are earning more than ever, with an average salary of 2.65 million euros.
Despite the push for more female representation, there has been a notable decline in overall board changes. To promote gender diversity in leadership, legal mandates have been established: since 2016, a 30 percent quota for women has been enforced for the reappointment of supervisory boards in publicly traded and co-determined companies. Additionally, large companies with boards of more than three members must now include at least one woman in their management teams, a requirement that has been in effect since summer 2022.
Interestingly, the number of board changes in 2024 has decreased across the board, with only 23 DAX board members departing, a drop from 40 the previous year. Personnel consultant Jens-Thomas Pietralla remarked that ‘the economy does not take football as a model.’ Amidst economic challenges in Germany, this trend reflects a more stable board structure. Furthermore, it’s worth noting that several car manufacturers and one aircraft manufacturer, including Volkswagen, Mercedes, Daimler Truck, and Airbus, have established separate boards dedicated to their China operations.
In November, Russell Reynolds also highlighted a shift in demand for executive roles, with CFOs (Chief Financial Officers) becoming more sought after than CEOs (Chief Executive Officers). This marks the second consecutive year of record demand for financial leaders, as companies across the twelve leading global stock indices appointed a total of 224 new CFOs by the end of the third quarter, a slight decrease from 233 during the same period last year, compared to just 161 new CEOs.
This topic was reported by Deutschlandfunk on January 2, 2025, at 07:00.