DAX 30 supervisory board study 2018 Selected results
July 2018 Jens-Thomas Pietralla & Dr. Thomas Tomkos Board & CEO Practice
Private and Confidential The following assessment and evaluation is based on publicly available biographical data *) on supervisory board members of DAX 30 and MDAX companies.
Obviously, the effectiveness of supervisory boards also depends on the board culture, the personalities of their members and their constructive dialogue.
*) Data sources: biographies made available by companies, invitations to annual meetings, annual reports, voting results from annual meetings; additional externally available biographical data where necessary
Private and Confidential 2 Preview...
§ As expected, the ”super election year 2018” has resulted in significant changes: 89 seats were up for election, of which 42 were filled by new candidates § Eight new digital directors add critical expertise to the DAX 30 boards. As of 2018 more than half of the companies can rely on this experience § For the first time the share of women among shareholder representatives in DAX 30 exceeds 30% § Equivalent representation of women in chairperson and committee positions is still lagging behind § While the number of foreign board members in DAX 30 declined slightly, the companies are able to attract experienced female board members, especially from the anglophone world § The cross-linkage of “Germany Inc.” is shifting: there are less supervisory board members with more than one DAX 30 mandate; however, several current DAX 30 executive board members take on DAX 30 supervisory board sets for the first time § The average grade of all DAX 30 supervisory boards according to the German school grading system improves again: from 2.3 to 2.2 § Lufthansa, Daimler, Bayer and MunichRe lead the ranking in 2018. Especially Lufthansa is able to leap from position 16 all the way to the top
Private and Confidential 3 Content – Results from the “super-election-year 2018“...
Digitalization! Quota fulfilled? Competency profiles and breadth of experience. Return to “Germany Inc.?”
The current ranking
Looking ahead – “super election year #2”!
Private and Confidential 4 Core messages
§ Digital expertise in DAX 30 supervisory boards is developing positively § Eight new digital directors entered the boards this year; more than half of the companies now have members with digital experience § Their background ranges from technology and online-focused industries to classical CIOs and leading experts in IT, industry 4.0 and digital content
Private and Confidential 5 Digital directors in the top 300 global companies by region vs. DAX 30 and MDAX
With the 2018 changes, DAX 30 and MDAX are moving up in comparison to their international peers. However, concerning “highly digital boards”, the USA is still ahead of the Germans
Russell Reynolds study: „Digital Directors 2016: Supervisory board study 2018: Diverse Perspectives in the Boardroom“
13% 20%
10% 40%
70% 47%
DAX 30 MDAX
„Highly Digital”: two or more digital directors on the supervisory board
Private and Confidential 6 Number of digital directors in DAX 30 and MDAX by gender - cumulated
Until 2014 hardly any female digital directors were elected into office. Starting 2015 more women (+22) than men (+12) took office *)
Number of digital directors in DAX 30 and MDAX over time 35 Total: 23 + 150% 57
30 As of 2018: + 12 25
20
15 + 22 25 Women 32 Men (44%) (56%) 10
5
0 2011 2012 2013 2014 2015 2016 2017 2018 M FW Year
*) Data base: supervisory board members still in office, counted from the year when they were first elected
Private and Confidential 7 “New digital directors“ 2018 in DAX 30
Eight additional digital directs with very diverse profiles entered the DAX 30 – some of the supervisory boards already had digital expertise Handelsblatt , cio.de ;
IT service provider Blockchain exec Digital service builder IT foundation builder Victoria Ossadnik, Marie Wieck Michele Trogni Martin Jetter Commerzbank (& Linde) Daimler Deutsche Bank Deutsche Börse Wallstreetandtech.com
Digital transformer Process designer Digital strategist CEO in the Cloud Aicha Evans Diane Greene Michael Nilles Dr. Mario Daberkow Picture sources: company websites; LinkedIn; Lufthansa Deutsche Post SAP SAP
Private and Confidential 8 Core messages
§ Germany needs qualified women for top-leadership levels § The mandated 30% female quota on DAX 30 supervisory boards was achieved – but on CxO, first and second leadership level more than 1,100 female leaders are missing § Despite the fulfillment of the quota: only one chairperson, only 8% female committee chairpersons and only 18% of committee positions are occupied by women
Private and Confidential 9 Development of the share of women
With currently 31.6%, for the first time in history the share of women among DAX 30 shareholder representatives has surpassed 30%. Changes in index membership, board sizes, as well as a high share of re-elections among women helped achieve this milestone, despite a relatively low share of female candidates among newly elected members
40% Share of women among successors 50% 37% 34% 34% 39% 46% 41% 33% 35% +2.5 PP +5 PP +0.4 PP 31.6% 30% +2.5 PP +3.6 PP 25% +3.8 PP
20% +3.8 PP +3.0 PP 15%
10%
Total share of women among shareholder representatives 5% After the respective annual meetings
0% 2010 2011 2012 2013 2014 2015 2016 2017 2018
Women/Total SH Reps 19/258 27/259 36/256 44/250 53/251 59/249 75/261 76/261 81/256
Private and Confidential 10 DAX 30 supervisory boards – share of women among shareholder, employee representatives and in total
For the first time the average share of women among both, shareholder and employee representatives exceeds 30%. Thus the total share of women improves by 2 percentage points to 33.8%
After 2018 elections SH Reps Empl. Reps Total After 2018 elections SH Reps Empl. Reps Total Adidas 25% 25% 25% HeidelbergCement 33% 33% 33% Allianz 33% 33% 33% Henkel 25% 50% 38% BASF 33% 33% 33% Infineon Technologies 25% 50% 38% Bayer 30% 30% 30% Linde 33% 33% 33% Beiersdorf 33% 17% 25% Merck 25% 50% 38% BMW 30% 30% 30% Munich Re 40% 50% 45% Commerzbank 40% 40% 40% RWE 30% 30% 30% Continental 20% 40% 30% SAP 56% 22% 39% Covestro 33% 33% 33% Siemens 30% 40% 35% Daimler 30% 30% 30% ThyssenKrupp 30% 30% 30% Deutsche Bank 30% 30% 30% Volkswagen 30% 30% 30% Deutsche Boerse 38% 50% 43% Vonovia 33% 33% Deutsche Lufthansa 30% 40% 35% Total 2018 31.6% 36.2% 33.8% Deutsche Post 30% 40% 35% Deutsche Telekom 30% 50% 40% Total 2017 29% 34% 31% E.ON 29% 33% 31% Total 2016 29% 32% 30% Fresenius Medical Care 33% 33% Total 2015 24% 29% 26% Fresenius SE 33% 33% 33% Total 2014 21% 28% 24% Total 2013 18% 26% 22%
Adidas and Beiersdorf have objected to “joint fulfilment”. Adidas uses the legal provision to round down, thus fulfilling the minimal requirement. Beiersdorf‘s next opportunities to improve the employee representative number will be in 2019
Private and Confidential 11 Newly elected women in DAX 30 – top executives
Ten women with top executive experience were newly elected to a total of 11 supervisory board positions. Seven are sitting executives, four are digital directors buj.net – Rotsch
Commerzbank Daimler Deutsche Bank Deutsche Bank Deutsche Börse Dr. Victoria Ossadnik Marie Wieck Michele Trogni Mayree Carroll Clark Barbara Lambert (GER, 1968) (USA, 1960) (UK, 1965) (USA, 1957) GER & CH, 1962) CEO General Manager Former SVP & CIO Founder & MP Former Group C Risk O E.ON Energie GER IBM Blockchain IHS Markit Eachwin Capital Banque Pictet & Cie
Telekom & SAP SAP SAP Volkswagen ources: Russell Reynolds Associates; company websites; S HeidelbergCement Aicha Evans Diane Greene Dr. Friederike Rotsch Marianne Heiß Margret Suckale (USA, 1969) (USA, 1955) (GER, 1972) (AUT, 1972) (GER, 1956) SVP & C Strat. O CEO General Counsel CFO, BBDO Group Former ED, BASF Intel Google Cloud Merck
Private and Confidential 12 Newly elected women in DAX 30 – consultants and experts
Three women without top executive experience were chosen for the expert knowledge they contribute to their respective supervisory boards Wikipedia - Shafik & Sapiro
Lufthansa Siemens ThyssenKrupp (& MunichRe) Miriam E. Sapiro Dame N. T. Shafik Ursula Gather (USA, 1960) (UK, 1962) (GER, 1953) Managing Director Director, London Dean, TU Dortmund and head of the Sard Verbinnen School of Economics board of trustees at Alfried Krupp von Bohlen und Halbach-Stiftung
Former member of the US Formerly with IMF and Mathematical statistics and industrial foreign ministry and World Bank; applications; national security council; International development, Extensive international experience and international trade and economic policy well connected security Sources: Russell Reynolds Associates; company websites;
Private and Confidential 13 Representation of women and men among chairpersons and in committees
Taking chairpersonship and committee membership as measure for influence in supervisory boards, the DAX 30 is still very much dominated by men
One female chairperson Ten female committee 76 of 411 committee positions out of a total of 30 chairpersons of 129 occupied by women
3% 8% 18%
W 57% of all women and 78% of all men hold committee position M
(Only shareholder representative considered) Private and Confidential 14 Share of women on upper management levels
The share of women is increasing and the targets get more ambitious. But there is still a long way to go towards “30%”
Share of women Missing women Vs. target (vs. share of 30%) Supervisory Board 5 (5)
Executive Board 12 (37)
Leadership level 1 65 (197)
Leadership level 2 378 (916) Total staff Total: 460 (1155) 0% 10% 20% 30% 40% Actual / Target / 30% Source: company statements 2017 (targets until 2020-22) plus calculations / estimates RRA (i.e. leadership span=7) Private and Confidential 15 Share of women on different leadership levels
There seem to be several different “distribution archetypes”
“Glass ceiling” “Grow organically” ”Create pull” “Surround”
Beiersdorf Continental SAP MunichRe
50% 50% 50% 50%
40% 40% 40% 40%
30% 30% 30% 30%
20% 20% 20% 20%
10% 10% 10% 10%
0% 0% 0% 0% VSEB LL 1 LL21. FE 2. FE VSEB LL 1 LL21. FE 2. FE VSEB LL 1 LL21. FE 2. FE VSEB LL 1 LL21. FE 2. FE
Also: Bayer, E.ON Also: Adidas, Dt. Bank, Post Also: BMW, BASF Also: Allianz, Lufthansa
Private and Confidential 16 Current share of women on top three operational leadership levels
There is a big difference in the talent pipeline of DAX 30 companies. Only four achieve 30% on at least one level
50%
45%
40% Unlike their peers, 35% HeidelbergerCement and 30% RWE set a target of “zero” for their Executive 25% Boards female representation 20%
15% Siemens: targets of LL 1 and 2 available 10% Both Fresenius and 5% Merck: due to corporate structure no formal 0% executive board SAP RWE BASF E.ON Linde BMW Bayer Merck Allianz Adidas Henkel Vonovia
Daimler Executive Board Infineon Siemens Covestro Beiersdorf Munich Re Continental Volkswagen
Fresenius SE Leadership Level 1 ThyssenKrupp Deutsche Post Commerzbank Deutsche Bank
Deutsche Boerse Leadership Level 2 Deutsche Telekom HeidelbergCement Deutsche Lufthansa Fresenius Medical Care
Private and Confidential 17 Core messages
§ The German Corporate Government Codex‘s (DCGK) recommendations show effect: 85% of companies have defined competency profiles for their supervisory boards – albeit with high variations in level of detail § Range of experience and average grades have improved continuously § Supply chain / operations experience still improvable
Private and Confidential 18 New non-executive directors 2018: a snapshot of the 42 profiles
More than 2/3 of newly elected shareholder representatives have gained top-management experience in major corporations, all hold a degree and more than 80% have gained international experience outside GER, AUT and CH
14 current/former DAX Execs 83% have experience from 36% have consulting Another 15 major corps top execs outside GER, AUT & CH experience
36% 36%
33% 83%
Eight are ”digital All hold university degrees 29% have experience in banking or directors“ investment
Tech./Eng./IT 19% 31% 29% 47% Economics 22% Law
Private and Confidential 19 DAX 30: share of supervisory boards that fulfill key criteria
DAX 30 companies increasingly recognize the need to have digital and innovation expertise on their supervisory boards. There continues to be a lack of sales and marketing expertise; operations experience is even decreasing
"Digital Director"
BeratungsConsultant/Value Creation Expertise-/ Value Creation Expertise
Lateral thinker / ExpertQuerdenker / Experten
Unabhängiger FinanzexperteIndependent finance expert
M&A / Integration; RisikomanagementM&A / Integration; Risk management
HRHR
RechtLegal
2* Sales & Marketing ErfahrungSales & marketing experience
R&D / innovationR&D / Innovation
2* Vertreter Branchenumfeld (z.B. Kunden, Lieferanten)Industry environment rep (i.e. customer, supplier)
Vertreter WettbewerberCompetitor rep
2* Rel. Operations Erfahrung (Einkauf, Produktion, Rel. ops experience (purchasing, production, etc.) etc.)
(Ehem.) CFO vergleichbarer Größenordnung(Former) CFO comparable size
3* (ehem.) CEO vergleichbarer Größenordnung3* (former) CEO comparable size Trend 2018 50% comparable current supervisory board exp.50% vergleichbare akt. Aufsichtsratserfahrung
0% 20%20% 40%40% 60%60% 80%80% 100%100%
Private and Confidential 20 DAX 30 competency profiles
By 2017 most companies have complied with the DCGK recommendation to define competency profiles, although with significantly different level of detail
Announced for 2018 Basic profile Detailed Very detailed
Not available
Sources: annual reports; logos: Wikipedia Private and Confidential 21 Core messages
§ Two steps forward, one step back – after an increase in 2017, the share of foreign shareholder representatives has declined in 2018 § Female executives i.e. from USA and UK are in high demand § Practically no representatives from Asia, Latin America or Africa among DAX 30 non-executive directors
Private and Confidential 22 Share of foreigners among shareholder representatives over time
After one year of increasing share of foreigners, there is a small, but obvious decline in 2018 (the board evaluation additionally takes into account living experience abroad)
35%
30% Rest of the world 25% USA 20%
Other Europa 15%
10%
5% AUT / CH
0% 2010 2011 2012 2013 2014 2015 2016 2017 2018
Private and Confidential 23 Change of nationalities among women and men
DAX 30 companies increasingly appoint qualified female candidates from USA and UK
Men Women
Aut & CHAUT & CH Sonst. EuropaOther Europe 1 USA ROW 3
1 3 5
1 5*USA + 2*UK
3 2 3 2
2 2 1 1
AusscheiderLeft office SuccessorsNachrücker AusscheiderLeft office SuccessorsNachrücker
Private and Confidential 24 Core messages
§ Decreasing cross-linkages through less “multi-non-executive directors” in the DAX 30 § Increasing cross-linkages through more sitting DAX 30 CxOs in supervisory board positions § Is the difference in compensation between CEOs and Supervisory board chairmen justified despite increasing requirements and responsibility?
Private and Confidential 25 Cross-linkages: non-executive directors who sit on several DAX 30 supervisory boards
Henkel, Siemens, Bayer and Daimler supervisory boards show the most cross-linkages; Adidas, Beiersdorf, HeidelbergCement and Volkswagen don’t have any
Cross-linkages Adidas Vonovia Allianz Volks- BASF 7 Bayer 13 Henkel (incl. SH committee) wagen Thyssen Bayer 6 BMW 6 Linde Krupp 7 Daimler 9 Siemens Siemens Beiersdorf 6 Deutsche Telekom SAP BMW 5 Allianz 1 Fresenius MC
Commerz- 5 BASF 4 Fresenius SE RWE bank 1 Commerzbank 1 HeidelbergCement Munich Continen- Re tal 2 Continental 1 Infineon 1 Covestro 2 Merck Merck Covestro 4 Deutsche Bank 5 MunichRe
Linde Daimler 2 Deutsche Börse 3 RWE 3 Deutsche Lufthansa 1 SAP Deutsche Infineon Bank 3 Deutsche Post 4 Thyssen Krupp Deutsche Henkel Börse 4 E.ON
Heidelberg Lufthansa 0 Adidas 0 Volkswagen Cement Fresenius Deutsche 0 Beiersdorf 0 Vonovia SE Fresenius Deutsche Post Medical E.ON Telekom 6+ linkages No linkages
Private and Confidential 26 Cross-linkages through sitting DAX 30 CxOs with non-executive board positions
Cross-linkages through DAX 30 CxOs with non-executive board positions in the index has increased this year. Compared to 14 linkages in 2017 there are 20 this year
Adidas Vonovia Allianz Volks- BASF wagen Thyssen Number of CxOs with DAX 30 non-exec mandates Bayer Krupp BASF (*3) Bayer Siemens Beiersdorf BMW (*2) Lufthansa BMW SAP Deutsche Post Deutsche Telekom
Commerz- Fresenius SE Henkel RWE bank Siemens ThyssenKrupp Munich Continen- Re tal Volkswagen
Merck Covestro Allianz Continental Daimler Deutsche Börse Linde Daimler Henkel Merck
Deutsche Infineon Bank Current CxO (male) Deutsche Henkel Börse Current CxO (female) Heidelberg Lufthansa Cement Fresenius Deutsche New in 2018 SE Fresenius Deutsche Post Medical E.ON Telekom
Private and Confidential 27 Development of cross-linkages between DAX 30 companies
While linkages through “multi NEDs” continue to decrease significantly, DAX 30 CxOs take on more supervisory board mandates
Linkages through: 2016 2017 2018 Index NED/NED (multi-supervisory board members) 72 62 53 Index ED/NED (DAX 30-CxOs) 22 14 20 Reasons e.g.: 100% 2016=100% • 15 multi-NEDs give up some of their -9% mandates; companies increasingly appoint 80% new candidates who don’t have existing -26% supervisory board positions in DAX 30 • Seven current DAX 30 CxOs enter DAX 30 60% supervisory boards for the first time
40%
20%
0% 2016 2017 2018
Private and Confidential 28 Number and share of committees that chairmen are represented on
MunichRe and Deutsche Bank have the most powerful and busiest chairmen, based on total number and share of supervisory board committees they are represented on
Adidas Allianz BASF Bayer Beiersdorf BMW Commerzbank Continental Covestro Daimler Deutsche Bank 4+5=9 Deutsche Boerse Deutsche Lufthansa Deutsche Post Deutsche Telekom E.ON Fresenius Medical Care Fresenius SE HeidelbergCement Henkel Infineon Linde Merck Munich Re 5+1=6 RWE SAP Siemens Vorsitz ThyssenKrupp Chair Volkswagen MemberMitglied Vonovia No memberNicht vertr. Private and Confidential 29 0% 20% 40% 60% 80% 100% DAX 30 supervisory boards – ranking according to 2017 compensation On average supervisory board members are awarded €178k. CEOs receive 15-times their chairmen’s compensation
Supervisory board compensation 2017 Multiple of CEO compensation vs. chairperson’s (2017)Faktor Vergütung VS VS zu AR VS (2017)
Fresenius SE Merck BMW SAP BASF Henkel Siemens HeidelbergCement Continental Beiersdorf Deutsche Bank Volkswagen E.ON ThyssenKrupp Fresenius Medical Care Fresenius Medical Care Linde Adidas Daimler Deutsche Boerse SAP Allianz Volkswagen Deutsche Lufthansa Bayer Allianz Bayer DurchschnittAverage 178.000 Deutsche Post Deutsche Boerse DurchschnittAverage * 15 Vonovia Deutsche Telekom Commerzbank BMW Covestro Infineon Deutsche Telekom Daimler RWE (ohne Töchter) Covestro Munich Re Munich Re Deutsche Post RWE Infineon Technologies Deutsche Bank Adidas Siemens HeidelbergCement Vonovia Beiersdorf BASF Deutsche Lufthansa Continental Henkel E.ON ThyssenKrupp Fresenius SE Merck Linde 0 100 200 300 400 500 600 700 800 Commerzbank NiedrigsteLowest DurchschnittAverage HighestHöchste 0 10 20 30 40 50 60 70 80 (Shareholder and employee representatives; full year; in ‘000 Euro; sorted by average compensations) Private and Confidential 30 Content – Results from the “super-election-year 2018“...
Digitalization! Quota fulfilled? Competency profiles and breadth of experience. Return to “Germany Inc.?”
The current ranking
Looking ahead – “super election year #2”!
Private and Confidential 31 DAX 30 assessment: Method and average grades over time
In the eighth year of assessment, the average grade of all DAX 30 companies has further improved
Gender percentages Nationality/experience Russell Reynolds Associates supervisory board analysis: ✔ ✔ Average grade of all DAX 30 companies over time ✔ (applying a scoring system similar to that used in ✔ *** ✔ German schools ) Diversity 10% 10% * ** Age distribution Tenure 2.9 2.7 40 45 50 55 60 65 2.6 2.4 2.4 2.3 x x x x 2.3 2.2 10% 10%
Range of experience** 40%
Position burden 2011 2012 2013 2014 2015 2016 2017 2018 20%
*) Toughening of requirements in ‘range of experience’ starting 2016. Without this change the average grade in 2016, 2017 and 2018 would be lower by 0.1 **) Additionally doubling of the weight of ‘range of experience’ (minimal implications on average, but several changes in grades of specific boards) ***) Grading scale: 1=best … 6=worst
Private and Confidential 32 Example: Number 1 and number 30 of this year’s ranking
Differences become obvious when comparing the first- and last-placed board of this year’s analysis
Lufthansa 1.5 Merck 3.0
Age distribution 35 75 1 35 75 2
4,0 7,5 Tenure (in years) 0 10 1 4 13 2
Gender percentages 2 3 30% 25%
Nationalities: § 8*GER, USA, CH § 8*GER (1*GER&CH) International experience: § AUT, CH, CHI, UK, USA 3 § USA, FIN, HK, CH, ESP 5
**) Range of experience 16 of 20 1 11+1 of20 3 possible points possible points
10 8 Position burden (points*) 6 14 2 3 13 3
*) Full-time/executive board position +5 points; DAX 30 mandate +3 points; DAX/MDAX chairman mandate +2 points; other supervisory/comparable mandate +2 points **) Smaller boards receive up to 2 ‘bonus points’ to allow for a fair comparison with larger boards
Private and Confidential 33 DAX 30 supervisory boards: Ranking based on available biographical data of supervisory board members
Three changes on Lufthansa’s supervisory board result in a significant improvement from 16 to number one; the runners up are Daimler, Bayer and MunichRe
Bewertungen verdichtet (Unternehmen in Reihenfolge des Rankings) Avg 2018 Details Ranking Ranking Ranking grade Avg grade Age Range of Position Change Company 2018 2017 2016 2018 2017 Tenure Diversity experience burden 2018 Deutsche Lufthansa 1 16 10 1,5 2,2 1 2,5 1 2 1 § All assessments according Daimler 2 5 3 1,7 1,9 2 1,5 1 3 2 to German school scoring Bayer 3 5 10 1,8 1,9 1,5 1,5 2 2 3 system Munich Re 3 3 15 1,8 1,7 3 1 1 3 3 § Data sources: company Deutsche Bank 5 1 2 1,9 1,5 3 2,5 1 2 2 websites, online available Infineon Technologies 5 10 15 1,9 2,1 1,5 3 1 3 2 CVs and biographical Siemens 5 1 1 1,9 1,5 2 1,5 2 2 2 data Allianz 8 16 15 2,0 2,2 3,5 2,5 1 2 NA § Diversity includes gender Commerzbank 8 5 5 2,0 1,9 3 1 2 2 3 percentages (left arrow) Continental 8 9 5 2,0 2,0 2 3 1 3 NA and internationality Deutsche Telekom 8 10 15 2,0 2,1 2,5 2,5 1 3 1 (right arrow) E.ON 8 3 5 2,0 1,7 3 2 1 3 2 § “Range of experience“ Adidas 13 10 3 2,1 2,1 2 2,5 2 2 2 weighted double Fresenius Medical Care 13 10 15 2,1 2,1 3 2,5 1 3 NA Vonovia 13 10 10 2,1 2,1 3 2,5 1 3 3 Deutsche Boerse 16 27 21 2,2 3,0 2 2 2 3 2 Deutsche Post 16 21 10 2,2 2,5 2,5 2,5 2 2 2 Linde 16 16 23 2,2 2,2 2 4 1 3 2 SAP 16 10 5 2,2 2,1 2 2 2 3 2 Beiersdorf 20 25 23 2,3 2,6 2,5 2 3 1 3 BMW 20 21 23 2,3 2,5 3 3,5 1 3 2 Covestro 20 NA NA 2,3 2,1 4 2,5 1 3 NA Henkel 20 19 10 2,3 2,4 1,5 3 2 3 3 Volkswagen 24 21 15 2,4 2,5 1,5 2,5 3 2 3 Arrow indicates BASF 25 21 27 2,5 2,5 3 2,5 2 3 NA tendency resulting Fresenius SE 25 19 23 2,5 2,4 2 3,5 2 3 NA from change between ThyssenKrupp 27 27 27 2,6 3,0 1 3 3 3 2 2018 and 2017 HeidelbergCement 28 27 30 2,7 3,0 3 3,5 2 3 2 RWE 28 27 29 2,7 3,0 1,5 3 3 3 NA Merck 30 26 21 3,0 2,8 2 4 3 3 NA
Private and Confidential 34 Content – Results from the “super-election-year 2018“...
Digitalization! Quota fulfilled? Competency profiles and breadth of experience. Return to “Germany Inc.?”
The current ranking
Looking ahead – “super election year #2”!
Private and Confidential 35 Terms of office in DAX 30 and MDAX
2019 will be another above-average election year: at least 152 terms will end
Number of terms ending per year and index
38% 31% DAX of all 30 NEDs, NEDs incl. 26 women DAX 30 MDAX 139
Average 73 95 64 78 52 60 91 79 52 70 27 29 20 2017 2018 2019 2020 2021 2022 2023
Private and Confidential 36 Ending terms of DAX 30 supervisory board chairmen
The terms of office of 12 chairmen (40%) will end 2019/2020 – eight of them will be 70 years or older
Average Then on average Then on average Sources logos: Wikipedia 11 years in office 12 years in office 10 years in office 73 years old 71 years old 66 years old
Private and Confidential 37 Author information
Jens-Thomas Pietralla leads the firm’s Board & CEO Practice in Europe and serves as Global Head of the Industrial & Natural Resources Sector. In this capacity, he leads the firm’s business with clients in aerospace & defense, automotive, capital and electrical goods, chemicals, energy, and industrial services. Jens-Thomas helps companies build superior boards and advises his clients on leadership matters, succession planning, and strategy. Recent work includes searches for a number of CEO, CFO, and other CxO positions, as well as assignments for chairmen and non-executive directors at listed and private equity-owned companies around the globe. He is based in Munich.
Thomas Tomkos leads the firm’s German Board & CEO Practice, the German CFO Practice and heads the Aviation, Aerospace and Defense practice in Europe. Previously, he led the firm’s German operations as country manager for more than seven years. Thomas conducts high-profile searches for board members, presidents and CEOs of public, privately-held, and family-owned companies and recruits members for advisory/supervisory boards in various sectors. He also leads board effectiveness projects and leadership assessments in development and M&A environments in a broad range of industries. He is based in Hamburg.
Private and Confidential 38