Germany’s law on the equal participation of women and men in executive positions
In accordance with the German law requiring women and men to be equally represented in executive positions in both the private and the public sector, the supervisory boards of listed companies or companies subject to Germany’s system of codetermination have to set a target for the proportion of women on the board of management. The board of management of such a company has to set a target for the proportion of women at the two management levels below that of the board of management. If the proportions of women at the time when these targets are set by the Board of Management and the Supervisory Board are below 30 %, the targets may not be lower than the proportions already reached. At the same time that the targets are set, the boards have to set periods for their achievement, which may not be longer than five years. In the first step, targets had to be set by no later than September 30, 2015, and deadlines fixed for no later than June 30, 2017.
To meet these legal requirements, the Supervisory Board of Daimler AG passed a resolution on April 28, 2015 that the target figure for the proportion of women on the Board of Management of Daimler AG would be 12.5 % (the same as the status quo at the time when the resolution was passed), while the deadline would be December 31, 2016. As of December 31, 2016, the eight-member Board of Management included a woman, Renata Jungo Brüngger. As a result, women account for 12.5 % of the Board of Management members, which means the current target has been met. This also means that the status quo for the next target will be 12.5 %.
In its last meeting in the reporting period on December 8, 2016, the Supervisory Board set a target for the proportion of women on the Board of Management of 12.5 % with a deadline of December 31, 2020.
With the appointment of Britta Seeger as a member of the Board of Management, effective January 1, 2017, the proportion of women on the Board of Management rose to 25 %.
On June 23, 2015, the Board of Management passed a resolution stipulating a target of 6.5 % women for the first management level below the Board of Management of Daimler AG (the actual proportion was 5.3 % at the time of the resolution) and of 10.0 % for the second management level below the Board of Management (the actual proportion was 9.9 % at the time of the resolution). The Board of Management set December 31, 2016 as the deadline for both of these targets.
At the time of the deadline on December 31, 2016, the proportion of women in the first management levels below the Board of Management was 8.1 % and 12.4 % in the second management levels, respectively, which means the targets we set for ourselves were surpassed.
On November 8, 2016, the Board of Management passed a resolution stipulating a target of 15 % women for both the first and second management levels below the Board of Management, with a deadline of December 31, 2020.
Since 2016, listed companies that have supervisory boards in which shareholders and employees are equally represented are required to a have proportion of at least 30 % women and 30 % men. This requirement has to be fulfilled by the Supervisory Board as a whole. If the side of the Supervisory Board representing the shareholders or the side representing the employees objects to the Chairman of the Supervisory Board about the application of the ratio to the entire Supervisory Board, the minimum ratio is to apply separately to the shareholders’ side and to the employees’ side for that election.
On December 31, 2016, 30% of the shareholder representatives in the Supervisory Board of Daimler AG were women (Sari Baldauf, Andrea Jung and Petraea Heynike), while 70% were men. On that date, 20% of the employee representatives on the Supervisory Board were women (Elke Tönjes-Werner and Sibylle Wankel), while 80% were men. In its meetings on December 8, 2016, and February 10, 2017, the Supervisory Board considered its nominations for the election at the Annual Shareholders’ Meeting 2017 and came to the conclusion that the shareholders and employee representatives should achieve the legally required share of women board members separately. Before this background the shareholder representatives declared in both meetings that they object to the Supervisory Board’s joint fulfillment of the legally required gender ratio. Thereafter, the Supervisory Board decided to nominate Dr. Clemens Börsig and Bader Mohammad Al Saad for election to the Supervisory Board by the Annual Shareholders’ Meeting 2017. The next election of employee representatives to the Supervisory Board will take place in 2018.
Along with Daimler AG itself, there are other Group companies subject to codetermination law. These companies have defined their own targets for the proportion of women on their supervisory boards, executive management bodies and the two levels below the board or executive management level, and have also set deadlines for target achievement. All relevant information here has been published in accordance with applicable law.