Equality - Study: Proportion of women in management positions at municipal companies has risen
The proportion of women in leadership positions in larger city companies has increased slightly according to a study, with the percentage of female executives in municipal companies reaching 22.1% in April - an increase of 0.6 percentage points compared to the previous year, as per the Zeppelin University Friedrichshafen analysis.
However, the proportion of women in leadership positions in municipal companies is still significantly below the political goal of parity and the values of Dax-40 companies, according to Study Leader Ulf Papenfuß. Municipal companies can be institutions such as nursing homes, museums, hospitals, public transportation companies, or utilities.
Municipal Companies vs. Dax-Conglomerates
For comparison, the latest data from the non-profit Allbright Foundation shows that the percentage of women in the boards of the 40 stock market heavyweights was 23.2% (as of September 1, 2023). The difference should be explained mainly by the legal requirements. Publicly traded and co-determined companies with more than 2000 employees and more than three members in the board must now ensure that at least one woman is represented in the top management.
Federal companies have even stricter requirements: If a company has more than two managing directors, at least one position must be held by a woman. Clear rules for the filling of leadership positions could help Papenfuß increase the proportion of women in municipal companies further. He suggests that these companies model themselves after those for federal companies.
1,420 Companies Analyzed
A total of 1,420 municipal companies were analyzed across 69 cities in Germany where public ownership holds a majority. Of the 2087 positions in the boards, executive boards, or management, 461 were held by women. In addition to the state capitals and major cities in each federal state, companies of the federal government and the federal states were also included in the study. The data was collected in April.
In the study period, 244 new top positions in municipal companies were filled - 27.9% of which were filled by women. This is an increase of 6.0 percentage points compared to the previous year but still relatively low, it was stated.
Hannover Leads the Ranking
The leading city was the Lower Saxony state capital Hannover, with a 50.0% representation of women in the top positions of municipal companies (previous year: 37.5%). Weimar in Thuringia followed with 44.4% (an increase of 11.1 percentage points), closely followed by Jena with 42.1% (previous year: 33.3%). Openbach am Main, the leading city from the previous year, ranked fourth.
Papenfuß pointed out significant developmental differences. For example, it is striking that more than half of the cities where at least 30% of the top positions are held by women are in Eastern Germany.
No female executive leaders were found in municipal companies in Ingolstadt, Osnabrück, Neunkirchen, St. Ingbert and Völklingen. In the last mentioned cities, all in Saarland, there are relatively few companies that could be considered according to the study's methodology. However, there are cities with similarly small ownership portfolios that have a higher female representation in management - besides Regensburg (23.1%), for example, the second-placed Weimar as well.
- The management level in municipal companies in Germany, such as hospitals in Hannover, is still below the political goal of equality, as highlighted by Study Leader Ulf Papenfuß.
- The increase in the proportion of women in leadership positions in companies like those in Friedrichshafen, Baden-Württemberg, has been modest, reaching 22.1% in April.
- Papenfuß suggests that municipal companies should adopt the strict gender equality policies implemented in federal companies to achieve a higher proportion of women in top positions.
- According to the Allbright Foundation's data, the Dax-40 companies have a slightly higher proportion of women in leadership positions with 23.2%, where legal requirements for representation in the board play a significant role.
- Among the cities analyzed across Germany, Hannover leads with a 50% representation of women in top positions in municipal companies, while cities like Ingolstadt, Osnabrück, Neunkirchen, St. Ingbert, and Völklingen in Saarland have no female executive leaders.
- Despite fewer companies in Regensburg and Weimar being considered according to the study's methodology, these cities have higher female representation in management compared to some cities with more significant ownership portfolios that lack this representation.
