Germany Considers Requiring Companies to Appoint More Women to Their Boards

On a recent morning in Berlin, several dozen women gathered in the heart of the city?s financial district to protest what they see as the exclusion of women from the highest echelon of Germany?s corporate world.� After all, a recent report by GovernanceMetrics International, the New York�City-based corporate governance research firm,�shows that women hold only a tenth of the board seats at Germany?s largest publicly listed companies.� Furthermore, more than a third of Germany?s top companies have boards that do not include even one female director.� As the country?s top corporate leaders stall when it comes to the women on boards issue, some observers are starting to speculate that Germany may start to explore the option of adopting a formal quota system to mandate the presence of women on the boards of publicly listed companies.

One woman at the recent protest in Berlin, Jenny Huschke, an equal rights representative for an association of German trade unions, told a reporter from NPR that ?we demand that the government finally does something about the absence of women in top jobs.?

Germany, after all, is the home of Deutsche Bank, whose CEO, Josef Ackermann, recently made headlines when he said that he believed adding more women in the boardroom would make corporate life ?prettier and more colorful.?

He was ridiculed in the media for the comment, but many Germans still feel that the remark, even if meant in jest, still reflects something about the company?s corporate culture.� Deutsche Bank, after all, has not appointed any female directors to its board.� Although women account for almost half the company?s work force, they make up less than a fifth of its management base.

Germany?s chancellor, Angela Merkel, one of the world?s most powerful female leaders, has already filled one third of the country?s Minister posts with female candidates.�

Up until now she has opposed quotas, but has also publicly said that she?ll give German companies ?one last chance? to confront the women on boards issue before her government enforces change.� Some of her government?s ministers are already exploring the option of following the example set by France, Spain, the Netherlands and Norway and embracing legally-binding quotas to boost the presence of women in the boardroom.� Germany?s Family Minister, Kristina Schroder, recently proposed the idea of a flexible quota system that would allow company?s to voluntarily sign on to bring in more female directors. By contrast, the country?s Labor Minister, Ursula von der Leyen, is firmly opposed to voluntary agreements.� In a recent interview, von der Leyen explained, ?I expect more. I want to see concrete figures and results.?�

Still, frustration with gender equality is not a Germany-specific issue, but rather a global concern. Even major international firms like the Nintendo and Skechers do not have any women on their boards. �

More broadly, one third of the companies in Europe have not appointed any women to their boards. � In total, more than 40% of the world?s largest companies do not have any women on their boards.

Many countries, like Spain, France, and Norway already have quota systems in place. �Even Italy, home to controversial Prime Minister Silvio Berlusconi, is currently considering adopting a ?quota rosa? system that would impose new requirements for the inclusion of female directors on the boards of public companies.

Whether or not Germany moves towards a formal quota system, the issue of women on boards is quickly becoming an important topic of public debate.� To see a slideshow GMI produced for Forbes.com on the Women on Boards issue across the globe, click here.

Data�taken from GMI?s 2011 Women on Boards Report.

This is a post by Nathaniel Parish Flannery at Forbes Woman, a The NextWomen partner.� See their website here.

Source: http://www.thenextwomen.com/2011/05/23/germany-considers-requiring-companies-appoint-more-women-their-boards

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