More and more women are promoted to the executive boards of the major German listed companies.

Their salaries there have recently risen significantly faster than those of their male colleagues.

This is the result of an analysis by the auditing company EY.

The total remuneration of female executives on the executive board of the 160 companies in the Dax family (i.e. Dax-30, M-Dax and S-Dax) rose by an average of 8.2 percent to 2.3 million euros last year compared to the previous year.

Ordinary male board members - without the chairmen of the board - had to be satisfied with an average increase of 1.6 percent to just under 1.8 million euros.

Tillmann Neuscheler

Editor in business.

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The picture changes, of course, if one takes into account that the top executive positions - which are paid significantly better than simple board positions - are still almost exclusively occupied by men. On average, the CEOs of the 160 companies listed in the Prime Standard earned almost 2.9 million euros. In the top stock market segment, the Dax-30, the CEOs received total remuneration of 5.3 million euros for 2020.

Compared to the previous year, the Dax bosses had to accept slight losses. Although the base salaries remained constant, the short-term annual bonuses of many top managers were lower due to the pandemic. For the current year, however, the auditors are again assuming a significant increase in executive board salaries. "For the current financial year we are expecting record sales and profits for many companies," explains EY remuneration specialist Jens Massmann, "that should ensure that executive board salaries will rise."

He sees the urgency for companies to appoint women to their board of directors as an important reason for the rising salaries of women.

Since female candidates are scarce, their market value increases, and so does their remuneration: “Highly qualified female top managers currently have a good negotiating position,” says Massmann.

Politics has recently increased the pressure on companies.

After the proportion of women in top management rose only slowly for many years, the Bundestag passed a kind of women's quota for board members.

Certain large companies will have to appoint at least one woman to the board of directors as soon as the board consists of at least 4 members.