At the end of 2014, only five percent of of all board members in the 200 largest companies in Germany (measured by turnover) were women, 47 out of 877 seats. This was an increase of just one percent from 2013. In the top 100 companies, the number of women on boards even dropped from just under five percent to just over four percent. These are major findings of a study by the German Institute for Economic Research (DIW) entitled Women Executive Barometer 2014. The study concludes that the executive bodies of the largest German companies remain "male-dominated monocultures."
The Women Executive Barometer study has monitored the representation of men and women on the boards of major German companies since 2006. It focuses on executive and supervisory boards of the 200 largest companies. The groups of companies that were analyzed include index DAX 30, MDAX, SDAX and TecDAX and 60 companies with government-owned shares. The study also focuses on the representation of women in the financial sector - in 100 of the largest banks and 60 insurance companies.
No major changes in publicly listed companies
In publicly listed German companies, the situation of women on boards is better, and yet worse at the same time. The executive boards of the DAX 30 companies (30 major companies listed on the Frankfurt Stock Exchange) were composed of more than seven percent women, which was an annual increase of only one percent. The share of women in the MDAX companies (the 50 largest companies) was three percent, which was actually a drop. Women were generally more represented on the supervisory boards, although they hold only 25% of the seats (DAX 30).
Greater shifts in companies with government-owned shares
A significant increase in the number of women on boards was reported in companies with state-owned shares. Fifteen percent of the executive boards of these companies in 2014 included women, which was two percent more than in 2013. In supervisory boards, the number of women increased by more than five percent to 24%. The share of women on the executive and supervisory boards of these companies was the largest out of all the other groups studied with five female CEOs and nine female supervisory board chairs.
Financial sector still lagging
Although women represent the majority of workers in the German financial sector, they are still inadequately represented on the boards of financial institutions. In 2014, women made up seven percent of board members on the executive boards of the largest banks and eight and a half percent in the largest insurance companies. In both cases, there was almost no change. Bank supervisory boards were made up of 18% women and 17% on the supervisory boards in insurance companies. The situation remains the same in the public and private sectors.
Will female quotas help?
In December 2014, the German government completed its bill which introduces mandatory quotas for female representation on the supervisory boards of publicly traded companies. The bill mandates that 30% of these positions should be held by women by 2016. However, none of the groups of German companies surveyed in the Women Executive Barometer 2014 study has come even close to this goal.
The authors of the study Elke Holst and Anja Kirsch note that the quota itself can't establish gender equality at the top management level. It is only the first step. Companies will need to focus more on flexible models of work schedules and career development.
The complete study is available for download at the German Institute for Economic Research website here.
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