Women's board share at Germany's largest listed firms dips again

The share of women on supervisory boards at Germany's largest listed companies among shareholder representatives has declined for a second consecutive year, according to an analysis by recruitment consultancy Russell Reynolds.

The proportion fell by 0.1 percentage points to 38.3% during the current round of annual general meetings. Among newly appointed board members, the share dropped to 32%, the lowest level recorded this decade. 

The companies in question are listed on Germany's DAX index, which tracks Germany's 40 largest listed firms by market capitalization.

The data marks a reversal over the past two years after 15 years of steady gains in female representation, which rose from around 7% to more than 40% by 2024. 

One possible explanation is shorter tenure among female board members. Women leaving or set to leave supervisory boards this year served an average of 5.4 years, compared with 9.5 years for men, the study found.

Jens-Thomas Pietralla of Russell Reynolds said that the lack of progress toward parity for two consecutive years was not a positive development, especially as it countered broader European trends. Pietralla added that women also remained underrepresented in key leadership positions.

The study suggests past inequality is now feeding into current disparities. 

In uncertain times, companies tend to prefer candidates with chief executive experience, Pietralla said. As relatively few women have held chief executive roles at DAX firms, the pool of eligible female candidates is smaller, he added.

At the top level, however, female representation has improved slightly. Following Sabrina Soussan's recent appointment as chair of the supervisory board at Continental, five of the boards are now chaired by women. If Amparo Moraleda takes over the supervisory board at Airbus from René Obermann in October, that number would rise further, lifting the share to 15%.