Supervisory board size
Supervisory boards among the DAX 40 companies range in size from six to 20 members; the average number of 16 members is only slightly up from the 15 recorded in the 2023 Board Index.
Notably, 88% of the reviewed companies are subject to co-determination, rising from 80% in 2023. However, overall employee representation on supervisory boards is declining. Just 10 years ago, all supervisory boards of the (then) DAX 30 were governed by co-determination rules. Among the DAX 40 today, only 35 companies are subject to these laws, although that proportion does mark an increase from 32 in the 2023 Board Index.
Gender diversity
Among the DAX 40, including companies not subject to the quota law, women now occupy approximately 39% of full board seats (including both shareholder and employee representatives), reflecting a slight increase from 37% in 2023. Three supervisory boards — Beiersdorf, Vonovia, and Zalando — have female majorities, and Bayer has achieved gender parity, with women making up 50% of its board.
At 28 out of the DAX 40, the proportion of women on boards is now close to or exceeds 40%. However, SAP and Adidas fall below 30%. The lowest representation of female board members seen in the observation period was 20% at Porsche Automobil Holding (which is not subject to the quota law); Beiersdorf records the highest representation, at 67%.
Despite progress, women continue to be underrepresented in chair positions on supervisory boards and committees. However, the proportion of women chairing audit committees has risen to 38% from 30% in 2023 — 15 audit committee chairs are women.
Men continue to dominate most committees, especially in the role of chair. All executive committees are led by men, and, with two exceptions, so are the nomination committees. Among personnel committees, there are four women in leadership positions, and in committees dealing with sustainability and ESG, only six out of 19 committees are chaired by women. The number of women serving as chairs of remuneration/compensation committees remained steady at four. However, when considering the total number of companies with such committees in place — 13 compared to eight last year — the proportion of women has fallen significantly, from 50% to 32%.
Our perspective
The various dimensions of diversity, including the number of women in different supervisory board roles, those with chair responsibilities, alongside the hiring of fewer women than men, do not signal any increase in gender diversity. On the contrary, certain indicators of diversity, such as gender, internationality, and age, appear to be declining overall in supervisory boards.
New directors and first-time directors
A notable majority of supervisory boards of the DAX 40 added at least one new director during the year under review. In total, 37 companies appointed new supervisory board members, representing 97% of the survey group, compared to just 38% last year.
The number of new supervisory board members rose sharply to 107 (17%), up from 40 (7%) recorded in the 2023 Board Index. Notably, 44% of these new members are women, slightly more than seen last year.
The proportion of first-time NEDs among the newly appointed supervisory board members rose to 69%. Of the new male directors, 70% are first-time appointees, as are 68% of the new female directors.
However, the proportion of new international supervisory board members fell to 20%, from 35%.
In this 22nd edition of the Germany Spencer Stuart Board Index, we examine changes brought about by succession, and the corresponding committee structures of the supervisory board.