Women Soaring High: The Rising Tide of Female Leaders in German DAX Companies
Increased female representation in Dax decision-making bodies
It's a new era for top management positions in German DAX companies, as more women are ascending the corporate ladder. According to renowned personnel consultancy Russell Reynolds, the female representation on these powerful boards has surpassed 25%, marking a significant leap from 23% the previous year.
In an unprecedented move, three DAX companies now have women sitting in the hot seat as CEO: Commerzbank by Bettina Orlopp, Daimler Truck by Karin Rådström, and Merck by Belén Garijo.
Since 2020, the DAX landscape has witnessed a surge in women's presence on top management boards, with an increase from 13% to 25%. Last year alone, 11 women were appointed to the management board of a DAX company. However, women seem to leave their posts earlier than their male counterparts—five female board members stepped down last year, all departing within three years, and none moving onto new executive positions. In contrast, men tend to remain on the board for a longer period, with an average departure age of 58, compared to women's 53.
At Commerzbank and Siemens Healthineers, the gender balance is nearly equal, with a 50% representation of women on the management board. Ten more companies also have over 33% female board members, while Porsche SE remains devoid of a female presence.
Double the board jockeys for China
An intriguing finding from the personnel analysts is that three car manufacturers and one aircraft manufacturer have dedicated board members for their China business—Volkswagen, Mercedes, Daimler Truck, and Airbus. Thanks to the Chinese market's strategic importance, these companies have found it essential to have locals sitting at the helm.
Subtle shake-ups
In a shift from the chaotic upheavals of previous years, the management boards remained relatively stable in 2024. Jens-Thomas Pietralla, the personnel consultant, muses, "The economy isn't mimicking football anymore." Despite the economic turmoil in Germany, only 23 DAX board members resigned, in stark contrast to the 40 who vacated their posts the year prior.
[1] Improving Diversity in Executive Committees- Greater female representation in top management is not just a matter of gender equality but also benefits corporations by fostering diverse perspectives and enhancing overall performance.
[2] The European Landscape- Compared to UK, Norway, and Sweden, Germany's representation of women on executive committees still needs improvement, reflecting a broader European push towards more diverse leadership.
[3] Moving Forward- Expectant trends suggest that DAX companies will persistently prioritize diversity and inclusion in their leadership structures, manifesting through aggressive hiring practices, targeted development programs, and ongoing support from regulatory bodies.
[4] The Health-and-Wellness Industry's Potential Boost - As women continue to redefine roles in the DAX companies, there's room for growth in health-and-wellness sectors, particularly Women's Health, considering the proportion of women increasingly in high positions of power in finance and business.
[5] Sustainable Growth - Analysts predict that the over 33% female representation in German DAX boards could lead to a modernized and more inclusive work environment, not only positively influencing internal corporate culture, but also aligning these companies with the global market demands of the 21st century.
