DAX 30 supervisory board study 2018 Selected results July 2018 - - PowerPoint PPT Presentation

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DAX 30 supervisory board study 2018 Selected results

July 2018 Jens-Thomas Pietralla & Dr. Thomas Tomkos Board & CEO Practice

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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

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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

• n 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

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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”!

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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

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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 Supervisory board study 2018: 47% 70% 40% 10% 13% 20% DAX 30 MDAX „Highly Digital”: two or more digital directors on the supervisory board Russell Reynolds study: „Digital Directors 2016: Diverse Perspectives in the Boardroom“

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5 10 15 20 25 30 35 2011 2012 2013 2014 2015 2016 2017 2018 M F

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 *)

*) Data base: supervisory board members still in office, counted from the year when they were first elected

Number of digital directors in DAX 30 and MDAX over time As of 2018:

23 57

+ 22 + 12 Total: + 150%

Year

25 Women (44%) 32 Men (56%)

M W

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“New digital directors“ 2018 in DAX 30

Blockchain exec Marie Wieck Daimler IT foundation builder Martin Jetter Deutsche Börse

Digital transformer Michael Nilles Lufthansa

Picture sources: company websites; LinkedIn; Wallstreetandtech.com; cio.de, Handelsblatt

Digital strategist Aicha Evans SAP Eight additional digital directs with very diverse profiles entered the DAX 30 – some of the supervisory boards already had digital expertise CEO in the Cloud Diane Greene SAP Digital service builder Michele Trogni Deutsche Bank Process designer

• Dr. Mario Daberkow

Deutsche Post IT service provider Victoria Ossadnik, Commerzbank (& Linde)

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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

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0% 5% 10% 15% 20% 25% 30% 35% 40% 2010 2011 2012 2013 2014 2015 2016 2017 2018

Development of the share of women

59/249 53/251 44/250 36/256 27/259 19/258 Women/Total SH Reps 75/261

+3.8 PP +3.8 PP +3.6 PP +2.5 PP +0.4 PP Total share of women among shareholder representatives After the respective annual meetings 46% 39% 34% 34% 37% 50% Share of women among successors 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 +3.0 PP +5 PP

76/261

41%

81/256

33% +2.5 PP

31.6%

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After 2018 elections SH Reps

• Empl. Reps

Total HeidelbergCement 33% 33% 33% Henkel 25% 50% 38% Infineon Technologies 25% 50% 38% Linde 33% 33% 33% Merck 25% 50% 38% Munich Re 40% 50% 45% RWE 30% 30% 30% SAP 56% 22% 39% Siemens 30% 40% 35% ThyssenKrupp 30% 30% 30% Volkswagen 30% 30% 30% Vonovia 33% 33% Total 2018 31.6% 36.2% 33.8% Total 2017 29% 34% 31% Total 2016 29% 32% 30% Total 2015 24% 29% 26% Total 2014 21% 28% 24% Total 2013 18% 26% 22% After 2018 elections SH Reps

• Empl. Reps

Total Adidas 25% 25% 25% Allianz 33% 33% 33% BASF 33% 33% 33% Bayer 30% 30% 30% Beiersdorf 33% 17% 25% BMW 30% 30% 30% Commerzbank 40% 40% 40% Continental 20% 40% 30% Covestro 33% 33% 33% Daimler 30% 30% 30% Deutsche Bank 30% 30% 30% Deutsche Boerse 38% 50% 43% Deutsche Lufthansa 30% 40% 35% Deutsche Post 30% 40% 35% Deutsche Telekom 30% 50% 40% E.ON 29% 33% 31% Fresenius Medical Care 33% 33% Fresenius SE 33% 33% 33%

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%

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

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Commerzbank

• Dr. Victoria Ossadnik

(GER, 1968) CEO E.ON Energie GER

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

Newly elected women in DAX 30 – top executives

Sources: Russell Reynolds Associates; company websites; Rotsch – buj.net

Daimler Marie Wieck (USA, 1960) General Manager IBM Blockchain Deutsche Bank Michele Trogni (UK, 1965) Former SVP & CIO IHS Markit Deutsche Bank Mayree Carroll Clark (USA, 1957) Founder & MP Eachwin Capital Deutsche Börse Barbara Lambert GER & CH, 1962) Former Group C Risk O Banque Pictet & Cie Telekom & HeidelbergCement Margret Suckale (GER, 1956) Former ED, BASF SAP Aicha Evans (USA, 1969) SVP & C Strat. O Intel SAP Diane Greene (USA, 1955) CEO Google Cloud Volkswagen Marianne Heiß (AUT, 1972) CFO, BBDO Group SAP

• Dr. Friederike Rotsch

(GER, 1972) General Counsel Merck

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Three women without top executive experience were chosen for the expert knowledge they contribute to their respective supervisory boards

Newly elected women in DAX 30 – consultants and experts

Sources: Russell Reynolds Associates; company websites; Sapiro & Shafik - Wikipedia

Lufthansa Miriam E. Sapiro (USA, 1960) Managing Director Sard Verbinnen Former member of the US foreign ministry and national security council; international trade and security Siemens Dame N. T. Shafik (UK, 1962) Director, London School of Economics Formerly with IMF and World Bank; International development, economic policy ThyssenKrupp (& MunichRe) Ursula Gather (GER, 1953) Dean, TU Dortmund and head of the board of trustees at Alfried Krupp von Bohlen und Halbach-Stiftung Mathematical statistics and industrial applications; Extensive international experience and well connected

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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

M W 57% of all women and 78% of all men hold committee position

(Only shareholder representative considered)

One female chairperson

• ut of a total of 30

Ten female committee chairpersons of 129 76 of 411 committee positions

• ccupied by women

3% 8% 18%

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Share of women on upper management levels

0% 10% 20% 30% 40%

Total staff Leadership level 2 Leadership level 1 Executive Board Supervisory Board

Actual / Target / 30%

Source: company statements 2017 (targets until 2020-22) plus calculations / estimates RRA (i.e. leadership span=7)

Share of women 5 (5) 65 (197) 378 (916)

Missing women

• Vs. target (vs. share of 30%)

Total: 460 (1155) 12 (37)

The share of women is increasing and the targets get more ambitious. But there is still a long way to go towards “30%”

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0% 10% 20% 30% 40% 50% VS

• 1. FE
• 2. FE

Continental

Share of women on different leadership levels

There seem to be several different “distribution archetypes”

0% 10% 20% 30% 40% 50% VS

• 1. FE
• 2. FE

Beiersdorf

0% 10% 20% 30% 40% 50% VS

• 1. FE
• 2. FE

SAP

0% 10% 20% 30% 40% 50% VS

• 1. FE
• 2. FE

MunichRe “Glass ceiling” ”Create pull” “Surround”

Also: Bayer, E.ON

“Grow organically”

Also: Adidas, Dt. Bank, Post Also: BMW, BASF Also: Allianz, Lufthansa

EB LL 1 LL2 EB LL 1 LL2 EB LL 1 LL2 EB LL 1 LL2

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Current share of women on top three operational leadership levels

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Adidas Allianz BASF Bayer Beiersdorf BMW Commerzbank Continental Covestro Daimler Deutsche Bank Deutsche Boerse Deutsche Lufthansa Deutsche Post Deutsche Telekom E.ON Fresenius Medical Care Fresenius SE HeidelbergCement Henkel Infineon Linde Merck Munich Re RWE SAP Siemens ThyssenKrupp Volkswagen Vonovia

There is a big difference in the talent pipeline of DAX 30 companies. Only four achieve 30% on at least one level Executive Board Leadership Level 1 Leadership Level 2 Unlike their peers, HeidelbergerCement and RWE set a target of “zero” for their Executive Boards female representation Siemens: targets of LL 1 and 2 available Both Fresenius and Merck: due to corporate structure no formal executive board

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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

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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

Eight are ”digital directors“

19%

14 current/former DAX Execs Another 15 major corps top execs

33% 36%

83% have experience from

• utside GER, AUT & CH

83%

All hold university degrees

47% 22% 31%

Economics Law Tech./Eng./IT 29% have experience in banking or investment

29%

36% have consulting experience

36%

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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

Trend 2018

0% 20% 40% 60% 80% 100% 50% vergleichbare akt. Aufsichtsratserfahrung 3* (ehem.) CEO vergleichbarer Größenordnung (Ehem.) CFO vergleichbarer Größenordnung 2* Rel. Operations Erfahrung (Einkauf, Produktion, etc.) Vertreter Wettbewerber 2* Vertreter Branchenumfeld (z.B. Kunden, Lieferanten) R&D / Innovation 2* Sales & Marketing Erfahrung Recht HR M&A / Integration; Risikomanagement Unabhängiger Finanzexperte Querdenker / Experten Beratungs-/ Value Creation Expertise "Digital Director" 50% comparable current supervisory board exp. 3* (former) CEO comparable size (Former) CFO comparable size

• Rel. ops experience (purchasing, production, etc.)

Competitor rep Industry environment rep (i.e. customer, supplier) R&D / innovation Sales & marketing experience Legal HR M&A / Integration; Risk management Independent finance expert Lateral thinker / Expert Consultant/Value Creation Expertise "Digital Director"

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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 Detailed

Sources: annual reports; logos: Wikipedia

Announced for 2018 Not available Very detailed Basic profile

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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

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Share of foreigners among shareholder representatives over time

0% 5% 10% 15% 20% 25% 30% 35% 2010 2011 2012 2013 2014 2015 2016 2017 2018

AUT / CH Other Europa USA Rest of the world 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)

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2 2 3 2 3 1 1 Ausscheider Nachrücker Aut & CH

• Sonst. Europa

USA ROW

Change of nationalities among women and men

DAX 30 companies increasingly appoint qualified female candidates from USA and UK

1 1 3 2 3 5 1 Ausscheider Nachrücker

Men Women 5*USA + 2*UK

Left office Successors Left office Successors

AUT & CH Other Europe USA ROW

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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?

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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 7 Bayer 13 Henkel (incl. SH committee) 6 BMW 6 Linde 7 Daimler 9 Siemens 6 Deutsche Telekom 5 Allianz 1 Fresenius MC 5 BASF 4 Fresenius SE 1 Commerzbank 1 HeidelbergCement 2 Continental 1 Infineon 1 Covestro 2 Merck 4 Deutsche Bank 5 MunichRe 2 Deutsche Börse 3 RWE 3 Deutsche Lufthansa 1 SAP 3 Deutsche Post 4 Thyssen Krupp 4 E.ON Adidas Volkswagen Beiersdorf Vonovia

6+ linkages No linkages

Adidas Allianz BASF Bayer Beiersdorf BMW Commerz- bank Continen- tal E.ON Deutsche Telekom Deutsche Post Lufthansa Deutsche Börse Deutsche Bank Daimler Covestro Vonovia Volks- wagen Thyssen Krupp Siemens SAP RWE Munich Re Fresenius Medical Fresenius SE Heidelberg Cement Henkel Infineon Linde Merck

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Cross-linkages through sitting DAX 30 CxOs with non-executive board positions

Number of CxOs with DAX 30 non-exec mandates BASF (*3) Bayer BMW (*2) Lufthansa Deutsche Post Deutsche Telekom Fresenius SE Henkel Siemens ThyssenKrupp Volkswagen Allianz Continental Daimler Deutsche Börse Henkel Merck

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

Current CxO (male) Current CxO (female)

Adidas Allianz BASF Bayer Beiersdorf BMW Commerz- bank Continen- tal E.ON Deutsche Telekom Deutsche Post Lufthansa Deutsche Börse Deutsche Bank Daimler Covestro Vonovia Volks- wagen Thyssen Krupp Siemens SAP RWE Munich Re Fresenius Medical Fresenius SE Heidelberg Cement Henkel Infineon Linde Merck

New in 2018

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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

0% 20% 40% 60% 80% 100%

2016 2017 2018

2016=100% Linkages through: 2016 2017 2018 Index NED/NED (multi-supervisory board members) 72 62 53 Index ED/NED (DAX 30-CxOs) 22 14 20

• 9%
• 26%

Reasons e.g.:

• 15 multi-NEDs give up some of their

mandates; companies increasingly appoint new candidates who don’t have existing supervisory board positions in DAX 30

• Seven current DAX 30 CxOs enter DAX 30

supervisory boards for the first time

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0% 20% 40% 60% 80% 100% Vonovia Volkswagen ThyssenKrupp Siemens SAP RWE Munich Re Merck Linde Infineon Henkel HeidelbergCement Fresenius SE Fresenius Medical Care E.ON Deutsche Telekom Deutsche Post Deutsche Lufthansa Deutsche Boerse Deutsche Bank Daimler Covestro Continental Commerzbank BMW Beiersdorf Bayer BASF Allianz Adidas Vorsitz Mitglied Nicht vertr.

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

4+5=9 5+1=6

Chair Member No member

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10 20 30 40 50 60 70 80

Commerzbank Linde Fresenius SE E.ON Continental BASF Vonovia Siemens Deutsche Bank RWE Munich Re Covestro Daimler Infineon BMW Deutsche Telekom Durchschnitt Deutsche Post Bayer Deutsche Lufthansa Allianz Deutsche Boerse Adidas Fresenius Medical Care ThyssenKrupp Volkswagen Beiersdorf HeidelbergCement Henkel SAP Merck

Faktor Vergütung VS VS zu AR VS (2017)

100 200 300 400 500 600 700 800 Merck ThyssenKrupp Henkel Deutsche Lufthansa Beiersdorf HeidelbergCement Adidas Infineon Technologies Deutsche Post Munich Re RWE (ohne Töchter) Deutsche Telekom Covestro Commerzbank Vonovia Deutsche Boerse Durchschnitt Allianz Bayer Volkswagen SAP Daimler Linde Fresenius Medical Care E.ON Deutsche Bank Continental Siemens BASF BMW Fresenius SE

Niedrigste Durchschnitt Höchste

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

(Shareholder and employee representatives; full year; in ‘000 Euro; sorted by average compensations)

Supervisory board compensation 2017 Multiple of CEO compensation vs. chairperson’s (2017)

Lowest Average Highest Average

178.000

Average

* 15

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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”!

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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

*) 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

2.9 2.7 2.6 2.4 2.3 2.4 2.3 2.2 2011 2012 2013 2014 2015 2016 2017 2018

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 ***) * **

✔ ✔ ✔ ✔ ✔

Nationality/experience Gender percentages Diversity

10% 10%

Age distribution Tenure

40 x 45 50 x 55 x 60 65 x 10% 10%

Range of experience**

40%

Position burden

20%

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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

*) 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

Merck

3.0 3

25%

2

7,5 4 13

5

§ 8*GER (1*GER&CH) § USA, FIN, HK, CH, ESP

3

8 3 13

3

11+1 of20 **) possible points

2

35 75

Lufthansa

1.5

4,0

1

10

3

§ 8*GER, USA, CH § AUT, CH, CHI, UK, USA

2

10 6 14

1

16 of 20 possible points

1 2

30%

35 75

Age distribution Tenure (in years) Nationalities: International experience: Position burden (points*) Range of experience Gender percentages

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DAX 30 supervisory boards: Ranking based on available biographical data of supervisory board members

§ All assessments according to German school scoring system § Data sources: company websites, online available CVs and biographical data § Diversity includes gender percentages (left arrow) and internationality (right arrow) § “Range of experience“ weighted double

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

Arrow indicates tendency resulting from change between 2018 and 2017

Bewertungen verdichtet (Unternehmen in Reihenfolge des Rankings) Company Ranking 2018 Ranking 2017 Ranking 2016

Avg grade 2018 Avg grade 2017

Age Tenure Diversity Range of experience Position burden Change 2018 Deutsche Lufthansa 1 16 10 1,5 2,2 1 2,5 1 2 1 Daimler 2 5 3 1,7 1,9 2 1,5 1 3 2 Bayer 3 5 10 1,8 1,9 1,5 1,5 2 2 3 Munich Re 3 3 15 1,8 1,7 3 1 1 3 3 Deutsche Bank 5 1 2 1,9 1,5 3 2,5 1 2 2 Infineon Technologies 5 10 15 1,9 2,1 1,5 3 1 3 2 Siemens 5 1 1 1,9 1,5 2 1,5 2 2 2 Allianz 8 16 15 2,0 2,2 3,5 2,5 1 2 NA Commerzbank 8 5 5 2,0 1,9 3 1 2 2 3 Continental 8 9 5 2,0 2,0 2 3 1 3 NA Deutsche Telekom 8 10 15 2,0 2,1 2,5 2,5 1 3 1 E.ON 8 3 5 2,0 1,7 3 2 1 3 2 Adidas 13 10 3 2,1 2,1 2 2,5 2 2 2 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 BASF 25 21 27 2,5 2,5 3 2,5 2 3 NA Fresenius SE 25 19 23 2,5 2,4 2 3,5 2 3 NA ThyssenKrupp 27 27 27 2,6 3,0 1 3 3 3 2 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 2018 Details

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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 36

27 91 79 29 52 20 70 78 139 73 52 64 60 95 2017 2018 2019 2020 2021 2022 2023

Number of terms ending per year and index

DAX 30 MDAX

Terms of office in DAX 30 and MDAX

38%

• f all

NEDs

Average

31% DAX 30 NEDs,

• incl. 26

women

2019 will be another above-average election year: at least 152 terms will end

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Ending terms of DAX 30 supervisory board chairmen

Sources logos: Wikipedia

Average 11 years in office 73 years old Then on average 12 years in office 71 years old Then on average 10 years in office 66 years old

The terms of office of 12 chairmen (40%) will end 2019/2020 – eight of them will be 70 years or older

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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.