Campus

Executives viewed with increased scepticism

Private German investors are becoming increasingly doubtful as to how genuine executives’ good intentions really are.

From a survey on corporate governance conducted by the Union Investment Company it emerged that 58 percent of investors feel sure that executives are more interested in the personal gains they can make than managing a company responsibly. Interviewees view bad management a factor that ought to be taken more seriously.

The issue is gaining in importance in the minds of investors and scepticism regarding managers is on the rise. The recent high profile change at the head of Siemens, the disappointing figures and the absence of any clear strategy for the future of the group have undoubtedly been a contributing factor to these results concludes Union Investment. The number of investors who take a very dim view of managerial conduct has risen by 4 percentage points since the second quarter of 2013. Forsa interviewed 500 individuals aged between 20 and 59 in August on behalf of Union Investment. Each person declared being a decision maker within his or her own private sphere, and possessed at least one monetary investment.

VW: Supervisory board remuneration more than tripled since 2006

A survey for 2012 reveals that the 30 groups that comprise the DAX, index paid their controllers 74.8 million Euros, a record high, up 7.4 percent on 2011 and higher than the record year of 2007. The biggest overall remuneration was paid by VW; its 20 controllers share 8.8 million Euros, an increase of 19%. Compared to 2006, the increase is no less than 210%. The DAX average increase on 2006 is a “mere” 23 percent. Heading the list of supervisory board members’ remuneration, is, again Ferdinand Piech with 1.1 million Euros. The grand old man of Volkswagen – so one reads – earns more than three times the amount of the average DAX-listed company controller (314.000). The second-highest remuneration goes to the trade union representative of IG Metall who, with his mandates in Siemens and VW, earns approximately a million Euros.

Survey on supervisory boards – a male preserve with paychecks on the rise

A survey carried out last year by Deutsche Schutzvereinigung für Wertpapierbesitz (German Association for Private Investors – DSW) reveals that the remuneration of the members of supervisory boards of DAX listed companies has reached a record high.

The watchdogs of the 30 German groups listed pocketed some 75 million Euros, an increase of 7.4% over the previous year. The survey also identified the most powerful; the list is headed by former Henkel CEO Ulrich Lehner who also holds mandates on the supervisory boards of Deutsche Telekom, Thyssen Krupp, Eon, Henkel. Porsche, Novartis and Oetker.  Lehner shares the ranking with Werner Wenning, former Bayer CEO and now on the supervisory boards of Bayer, Eon, Siemens and Henkel.

Woman are conspicuous by their absence from the top 10 supervisory boards. While it is true that the number of women appointed has risen from 19% to 22%, there are 12.5% fewer women on the most important board committees. All in all, Germany falls far short of the 40% female quota laid down by the European Union. The only group to keep up is Henkel where women occupy 44% of seats on the supervisory board which, incidentally, is the only DAX listed one to be headed by a woman, Simone Bagel-Trah.