Women on DAX boards: doubling since 2020, but still in the minority

Women on DAX boards: doubling since 2020, but still in the minority

According to a report by www.tagesschau.de,

The number of women on the boards of German stock exchange companies has more than doubled since 2020, but still remains in the minority. At the beginning of 2024, there were 128 female managers on the top floors of 160 companies, while in January 2020 there were still 59. Despite the increase, women are still clearly in the minority, as they only make up 18% of board members in DAX companies. One reason for this is that almost four out of ten companies in the DAX, MDAX and SDAX stock market indices do not have any female managers on the board.

EY found that many companies (49 percent) were content to appoint only one woman to the board. This leads to the assumption that the legal minimum requirements should only be met. When making new appointments to the board, listed companies with equal co-determination and more than 2,000 employees and more than three board members must also ensure that there is at least one woman in the management team.

In the second half of 2023, 41 new members moved into the boardrooms of the 160 companies evaluated, 16 of whom were female. Female managers continue to be most represented in the DAX companies, followed by the MDAX and SDAX companies.

The impact on the market and the financial industry could be that greater diversity on boards could lead to a broader perception of corporate risks and innovative solutions. Companies with more diversity also tend to have higher returns, which could have a positive impact on the market in the long term. However, care must also be taken to ensure that the appointment of women to boards is not just aimed at fulfilling quota regulations, but that qualified women deserve the positions based on their competence and experience.

Given these developments, an increased demand for qualified female managers and increased public awareness of the representation of women in leadership positions could also be observed. In the long term, this could lead to a cross-industry change in corporate culture and an improved brand image.