Law for more women on boards Which companies now have to act

Status: 11.06.2021 3:55 p.m.

In future, women must be given greater consideration when filling executive board positions: the Bundestag has passed the “second management positions law”. What are the rules now? And how many companies does this affect?

What was decided?

The new minimum number of women on executive boards applies to listed companies with equal co-determination and more than 2,000 employees. In future, you must have at least one woman on the board if it has more than three members. The minimum participation only applies when a new position is filled. “An appointment of a board member in violation of this participation requirement is void,” says the law. There are stricter rules for companies with a majority shareholding by the federal government: In general, if there are more than two members of the management team, there should be at least one woman. This applies to Deutsche Bahn AG or German air traffic control, for example. In addition, the fixed minimum quota for the Supervisory Board is to apply, which is 30 percent.

interview 03/08/2011

Other listed or co-determined companies that do not fall under the requirement should in future have to justify if they plan for the board of directors without women. If this does not happen, there is a risk of fines. With the law, the reporting obligations for companies are tightened accordingly. However, the Federal Council still has to approve the law.

How many women sit on company boards?

More than half of the large listed companies in Germany have no women on their boards, as a study by the Women in Supervisory Boards Initiative (FidAR) shows. The 160 groups in the stock market indices DAX, MDAX and SDAX as well as the 26 companies listed on the stock exchange with equal co-determination (as of March 22nd) were evaluated.

background 02/17/2011

Accordingly, in 103 of 186 corporations examined, not a single woman sits in the boardroom. At the same time, the average proportion of women on executive boards rose to 13 percent compared to the previous year, which corresponds to a plus of 2.3 percent. In the 200 companies with the highest turnover in Germany, the proportion of women on executive boards is 11.5 percent, as a study by the German Institute for Economic Research (DIW Berlin) shows. In the past year, the proportion of women on supervisory boards in the currently 106 companies that are subject to the mandatory women’s quota was an average of 35.9 percent.

Which companies need to improve?

According to the FidAR study, the number of companies that would be affected by the law passed today is 66. Of these, 25 had no women on the board of directors as of the reporting date. This also applies to the engine manufacturer MTU and HeidelbergCement, two companies from the DAX. The situation will soon change at the building materials company. At the end of May, HeidelbergCement announced that Nicola Kimm will take over the newly created position of Chief Sustainability Officer from September 1st. She is then responsible for the issues of sustainability and new technologies.

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The course has also been set at MTU: The company has formulated the goal of a women’s quota on the Executive Board of 25 percent by 2022. The Executive Board is currently made up of four men. According to the study, Knorr-Bremse was also one of the companies that would have to make improvements. That has now happened: Claudia Mayfeld has been in charge of the newly created Executive Board department for Integrity and Law since May 1, 2021. According to the authors of the study, Adidas, Bayer, Eon, Infineon, Fielmann and Südzucker have each appointed women to their boards since the bill was announced.

Sun Nan’s home focuses on fashion mix-and-match styles. The living room uses blue to match the background color. The color of the window mullions, the color of the sofa, and the color of the pillows are all blue, giving the home a faint ocean atmosphere. The sofa is a white fabric sofa, and a few green plants are placed by the window, adding infinite vitality to the space, as if it is integrated with the outdoor nature.

The color of the living room is mostly warm yellow, the yellow chandelier emits a warm light, and there are flowers on the table. The floors, cabinets, and tables are all log designs, full of original ecology. The curtains are made of white gauze, which adds a sense of lightness and romance.

The tea room is full of Zen, and Sun Nan is playing the guzheng, looking very calm. The coffee table is a rectangular log design, very spacious and generous, and there are several exquisite tea cups on the coffee table. The cabinet at the back is designed in simple wood, and the plan is very neat. There is a Buddha statue on the cabinet, and the landscape paintings and tea sets on the wall are very literary and artistic, as if there is nothing to worry about here, just playing the piano, making tea, and visiting the Buddha.

Next to the corridor is a large bookcase. The bookcases and the stair rails next to it are white, as if they have come to the elegant palace of the Aegean Sea. There are various books and photo frames on the bookshelf. The whole bookshelf is as high as five stories from bottom to top. The space is very spacious and the visual effect is very vast. The floor is covered with a white patterned carpet, which looks high-end and luxurious.

The shelf in the kitchen is made of wooden planks, with various kitchen utensils and tableware placed, very neat and beautiful. At first glance, it does not look like a kitchen, but a display shelf for handicrafts. A few baskets are placed on the black wooden cabinet next to it. For a moment, a retro sense of a traditional kitchen is added. The combination of ancient and modern is particularly creative, a kitchen full of connotation.

Sun Nan’s children are all talented, with all kinds of painting and calligraphy. This is the children’s studio. His youngest daughter is painting oil paintings, which is very professional. The whole space exudes a strong artistic atmosphere, which is really enviable!

The bedroom decoration is more stylish and simple, and the blue patterned carpet adds a sense of tranquility and beauty. The black leather sofa shows the noble atmosphere. The bedside table is painted with white paint, pure and beautiful, and there are alarm clocks and plants on the table. The white bedding is pure, and the sun shines in, as if even sleep has become extremely transparent.

In the midday of April 23, the “A-share first-quarter performance pre-increasing king” Hotview Bio once again rose by the daily limit, the stock price reported 174.13 yuan per share, and the total market value exceeded 10 billion yuan. In the past 9 trading days, there were 6 daily limits, and the stock price has increased by more than 3 times since April.

As the king of pre-increasing A-share performance in the first quarter, Rejing Bio realized a net profit of 660 million yuan attributable to the parent in the first quarter, a year-on-year increase of about 1,200 times. Regarding the reasons for the pre-increasing performance, Hotview Bio issued an announcement stating that the company’s two new coronavirus antigen detection kits have been certified by the German Federal Institute of Medicines and Medical Devices and can be sold in German supermarkets and pharmacies. Affected by the performance forecast, from April 12th to April 19th, Hotview Biotech gained 5 daily limit on 6 trading days.

It is worth noting that the company’s major shareholders violated regulations to reduce their holdings after the stock price of Hotview Biotechnology soared. Rejing Bio announced that in October 2020, shareholders of Fortune Group announced that three companies will reduce their holdings, and the reduction plan will expire on April 9. During the period, a total of 4.57 million shares were reduced, accounting for 7% of the company’s total share capital. The price of the reduction is maintained at around 40 yuan, and the amount of the reduction is 194 million yuan.

After the expiration of the shareholding reduction, the three Dachen companies are still reducing their shareholdings. Rejing Bio issued an announcement on this matter, stating that due to the negligence of the staff to reduce the shareholding procedures, the three companies of Dachen Group reduced their holdings of 1.368 million shares through a centralized bidding transaction, accounting for 2.2% of the company’s total share capital, and 2.2% after the stock price soared. The reduction in holdings is also close to 100 million yuan. (Text | AI Finance and Economics Zhu Quanhong)

In return for planned aid from the federal government in the Corona crisis at Deutsche Bahn, the board of directors should forego bonuses. This emerges from a decision of the budget committee of the Bundestag, which is available to the German press agency. According to the resolution, the Management Board of Deutsche Bahn AG will be asked to forego variable remuneration or comparable remuneration components, special payments, profit sharing or other separate remuneration in 2022 for the 2021 financial year. In view of the corona crisis, the group management board had not received any bonuses for the past year.

Help against bonuses

The federally owned Deutsche Bahn is dependent on federal financial aid, as the Corona crisis had caused a slump in passenger numbers. The result was a record loss of 5.7 billion euros in 2020. In order to cope with the loss, the federal government had already announced billions in aid. An increase in equity by five billion euros is planned. However, the payment is dependent on the approval of the EU Commission. It must ensure that the aid does not put competitors at a disadvantage. One of the requirements of the EU is said to have included the executive board’s waiver of bonuses, as the “Spiegel” reported.

Criticism from the union side

The discussion about the Executive Board bonuses for the current year was therefore held intensively. In January, the federal chairman of the Union of German Locomotive Drivers (GDL), Claus Weselsky, criticized the DB board of directors saying that “their own bonuses are obviously more important than the weal and woe of the railway system”. The DB board did not want to tighten their belts despite Corona, but demanded that from the direct staff, according to Weselsky. The Green budget politician Sven-Christian Kindler said: “There is no question that the board of directors cannot get bonuses in view of the billions in aid. Right so that the budget committee has clarified that again.”

Reform of the remuneration rules

Kindler also demanded that the bonus regulations for the rail board would have to be fundamentally revised and reduced for the time after Corona. In general, the federal government must ensure that the board of directors is remunerated with moderation and moderation. According to Kindler, it could not be that the variable remuneration, i.e. the bonus payments, was as high as the fixed salary in the last few years before Corona. The current freeze on bonuses is the ideal opportunity to reform the remuneration regulations for the railway management board.

Agreement with Brussels soon?

The negotiations between the German government and the EU Commission should be on the home straight. Significant progress has been made, reported the dpa news agency, citing government circles. The aim is to find an “industry solution” from which not only Deutsche Bahn but also the competition should benefit. The focus is on lowering train path prices, for example in rail freight transport. This is now stored in the planned supplementary federal budget for 2021. In return, when the federal government plans to increase equity for Deutsche Bahn, there should no longer be any competition requirements for the group. The aim is a “modular solution” totaling around five billion euros.

Through actual inspection in a number of villages, communes and towns of the two districts, the inspection team recognized the propaganda on the election of the National Assembly, term XV and the election of deputies to People’s Councils at all levels for the term 2021-2026. To elect districts interested in directing and implementing synchronously to communes, towns, villages, and residential groups. Inspection team No. 2 of the Provincial Election Propaganda Committee works with the Yen The District Election Commission. Many forces were mobilized to propagate through channels such as: Training conferences, online competitions to learn about the law on election; website of the district; billboards, panels, posters, posters, posters; the district, commune and town radio system broadcast newsletters to disseminate the election’s purpose, significance and importance; election legislation and new features; results of implementation steps; Consultation results to select and make a list of candidates. Reflecting the feelings and aspirations of the voters before the election; introducing socio-economic achievements, especially the achievements of building a new countryside, an advanced example in the fields of work, labor, production, study; organized many cultural, artistic and sports activities to celebrate the great national holidays (Southern Liberation Day, reunification April 30 and International Labor Day May 1, President’s birthday Ho Chi Minh City) associated with local events, grassroots (the Congress of Women’s Union at commune level) celebrating the upcoming 23/5 election day creates a joyful and exciting atmosphere among the people.

At the same time, Lang Giang and Yen The districts are also interested in mobilizing socialization and actively coordinating with armed forces units, businesses, agencies and organizations standing in the area to support human resources and localities. facilities, equipment to participate in propaganda, advocacy, security and order for the upcoming election. The second inspection team checked in Song Cung village, Tan Hung commune (Lang Giang). In addition to the work done and the results achieved, Mr. Trinh Van Anh – Head of the inspection team suggested the Election Commission and the Subcommittee for district propaganda follow up and strictly implement the conclusion No. 98-KL / Board of Directors dated April 15, 2021 of the Steering Committee of the Election of National Assembly, term XV and representatives of People’s Councils of Bac Giang province term 2021-2026; the guiding documents, instructions of the Provincial Election Commission. From now until the election day is the peak time, so districts follow closely the process, the steps to prepare for the election, intensify the inspection, review, direct, guide, and rectify immediately. a limited number of propaganda activities, especially at the grassroots level. Concentrate highly, effectively organize propaganda, especially enhancing visual propaganda in communes, villages, population groups, paying attention to communes, villages with difficulties and the workforce; promote the effect of the grassroots radio system; exploiting the advantages of electronic message boards and websites serving propaganda work. Select suitable propaganda content, increase the duration and number of news, articles and newsletters published on the media. Associate the propaganda about the election with cultural, cultural and sport events and activities at the grassroots level, creating joy, excitement and confidence among the people. Continue to mobilize the participation of forces, branches, unions and propaganda. Encourage and urge cadres, civil servants and public employees to actively take an online contest to learn about the law on election from now until April 30.

The Head of the delegation also noted the district’s election propaganda subcommittee for the plan to handle arising situations; at the same time, to receive and reflect the recommendations of the Propaganda Sub-Committee and the Election Commission of the two districts to the Provincial Sub-Committee on Election Propaganda on the deployment of text messages on election propaganda on mobile phones; embellishing a large panel in the area of ​​Luong bridge, which borders Lang Son province to suit the election event; consider assigning the establishment to actively prepare ballot boxes and voter card templates to facilitate use and save costs. My Binh