Women on corporate boards are better paid than men | Free Press

Frankfurt / Main (dpa) – Women are a minority on the bottom floor of the German economy, but unlike many women of the same sex, on average they earn more than their male colleagues.

According to an assessment by consulting and auditing firm EY, female board members received an average salary better than senior managers across all of the Dax family stock indices last year. EY expert Jens Massmann cited growing efforts by companies to attract women to their top management as a major reason. Since candidates are scarce, their market value and therefore their salaries increase.

In the top stock market league of the 30 DAX companies, women on the board of directors earned an average of € 2.93 million last year, an average of around € 30,000 more than male senior managers. According to the information, women have been better paid there on average for four years.

In the 60 companies of the MDax, the salary of the top executives was 1.44 million euros, on average about 115,000 euros more. According to the information, women were considerably ahead in the SDax with 70 companies for the first time since the study began in 2013. Their average total direct remuneration was around 1.07 million euros, about seven percent more. than that of the male council members.

However, the situation is different with the general income of men and women in Germany. According to the latest data from the Federal Statistical Office, the average gross hourly wage of women in the last year was 17.72, 20 percent lower than that of men (22.61 euros).

However, three quarters of the wage gap can be attributed to structural reasons. For example, women more often work part-time and less often in skilled management positions. Adjusted for these factors, there was a 6 percent wage gap; that’s what women earn less than men with comparable qualifications and work.

Overall, according to EY, board member salaries fell in 2019 for the second year in a row. It fell in the 160 companies of the Dax family by an average of 4.6 percent to about 1.99 million euros. “The difficult economic situation last year, even before the corona pandemic, caused significant salary losses among senior managers,” explained Massmann, an expert at EY. In 2018, a decrease of 0.5 percent had already been registered. For 2020, Massmann expects lower remuneration due to the crown.

While female board members were able to resist the downward trend in 2018, their compensation fell 5.9 percent the following year, more than that of men (minus 3 percent). The total direct compensation is made up of the base salary, the annual bonuses and the long-term components that were awarded in the year. CEOs were not included in the comparison.

In Germany’s top stock market league, according to EY, a good twelve percent of all board members were women in 2019, seven percent at MDax and just five percent at SDax.

The debate over a quota of women on the boards of Dax companies had recently accelerated again. Bavarian Prime Minister Markus Söder (CSU) had spoken out in favor. “By the way, I am also in favor – I say it very clearly here – that we have to give a push to the laws that are now being made in Berlin with boards of directors, that we have to push each other and then implement it sensibly” , said. in a digital event “Zeit”.

In the coalition agreement, the Union and the SPD agreed to improve the law on women in leadership positions. At the beginning of the year, the Federal Minister for Women, Franziska Giffey, and the Minister of Justice, Christine Lambrecht (both from the SPD) presented a bill. Accordingly, the existing quota of women on supervisory boards is envisaged to be expanded and a female is required to promote to all-male members of the company’s board of directors with at least four members if a seat is available. After the differences, the heads of the coalition decided to create a working group in the summer.