Employees play an important role on the supervisory boards of many German companies. But the proportion of supervisory bodies with representatives of the workforce is falling. Why is that?
The influence of employees is gradually waning on the supervisory boards of the large listed corporations in Germany.
According to an analysis by the Munich-based recruitment consultancy Russell Reynolds Associates, a quarter of Dax companies will probably no longer have any employees on the supervisory board from September. The background is therefore both the planned increase in the number of companies listed in the Dax from 30 to 40 and the internationalization of the German economy.
In 2015, employees were still represented on all supervisory boards of the 30 companies listed in the Dax at the time. According to Russell Reynolds, there are currently no employees on the supervisory boards of four DAX companies: Vonovia, Deutsche Wohnen, Linde and Fresenius Medical Care. The industrial gas manufacturer Linde, for example, has relocated its official headquarters to Dublin after the merger with the US group Praxair and is therefore subject to it Irish law.
According to the analysis, six of the candidates for the expansion of the Dax to 40 member companies are without employee representatives on the supervisory board, so that the number of Dax companies without co-determination on the supervisory board could increase to ten. This includes the aircraft manufacturer Airbus.
The dwindling influence of employees is therefore even more evident in the M-Dax. In 2016, according to the study, twelve of the 50 M-Dax companies at the time were without employee representatives, a share of 24 percent. There are now 26 out of 60 companies, which corresponds to 43 percent.
“The internationalization of German companies continues and is an economic necessity,” said Thomas Tomkos, Russell Reynolds’ expert for the supervisory bodies of the German economy. “However, it must be questioned whether this is slowly undermining the thoroughly successful German model of co-determination.”
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
