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More Women on Supervisory Boards: Increasing Indications that the Effect of the Gender Quota Extends to Executive Boards

Author

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  • Anja Kirsch
  • Katharina Wrohlich

Abstract

The statutory gender quota for supervisory boards is effective: the proportion of women on supervisory boards has increased over the past years, especially in the companies subject to the quota. But is the quota creating trickle-down effects for executive boards? As the second part of the DIW Berlin Women Executives Barometer, this report analyzes whether a relationship between the growth of the proportion of women on supervisory boards and on executive boards exists. The key result is that a relationship is discernible and there are good indications that the gender quota for supervisory boards positively influences the presence of women on executive boards. However, a cause and effect relationship has yet to be demonstrated. Answers from interviews with 60 supervisory board members of both genders show they have a wide range of opportunities to influence how executive board positions are filled and thus to work towards more women in upper management. In many places, however, these possibilities have not yet been fully exhausted. Further political and social pressure and new forms of work organization could help to increase the proportion of women in management positions in a sustainable way.

Suggested Citation

  • Anja Kirsch & Katharina Wrohlich, 2020. "More Women on Supervisory Boards: Increasing Indications that the Effect of the Gender Quota Extends to Executive Boards," DIW Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 10(4/5), pages 44-49.
    • Handle: RePEc:diw:diwdwr:dwr10-4-3
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.703754.de/dwr-20-04-3.pdf
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    Citations

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    Cited by:

    1. Viktor Bozhinov & Jasmin Joecks & Katrin Scharfenkamp, 2021. "Gender spillovers from supervisory boards to management boards," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1317-1331, July.
    2. Song, Jun Myung, 2022. "Female senior managers and the gender equality environment: Evidence from south Korean firms," Pacific-Basin Finance Journal, Elsevier, vol. 75(C).
    3. Pallab Kumar Biswas & Larelle Chapple & Helen Roberts & Kevin Stainback, 2023. "Board Gender Diversity and Women in Senior Management," Journal of Business Ethics, Springer, vol. 182(1), pages 177-198, January.

    More about this item

    Keywords

    corporate boards; board composition; boards of directors; board diversity; Europe; women directors; gender equality; gender quota; Germany; management; private companies; public companies; supervisory boards; executive boards; CEOs; women; finance industry; financial sector; private and public banks; insurance companies.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J59 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Other
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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