Research Findings: Increase in Number of Municipal Company CEOs - Urban Companies See a Modest Uptick in Female Leadership Roles among City-Based Enterprises (Study)
### Public Corporate Governance Codes and Gender Equality in Municipal Companies Across Germany
In an effort to promote transparency, accountability, and performance, Public Corporate Governance Codes in Germany have increasingly incorporated gender equality objectives in their frameworks. These guidelines aim to improve the representation of women in leadership positions within municipal companies, which include hospitals, nursing homes, libraries, museums, public utilities, public transport companies, and housing associations.
The codes contribute to gender equality by setting requirements or recommendations for gender diversity on supervisory boards and executive management levels, encouraging transparent reporting on diversity targets and progress, promoting equal opportunity policies, anti-discrimination measures, and inclusive recruitment practices, and sometimes tying compliance with governance codes to financial or reputational incentives.
Recent studies show a gradual increase in female representation among supervisory boards and top management in municipal and public companies due to the implementation of these governance codes. Although progress is still limited compared to the private sector, municipal companies are increasingly appointing female CEOs and senior executives.
Municipal companies in Germany have been part of nationwide efforts to meet gender quotas and voluntary targets extending to managerial levels. Despite the increase, the proportion of women in city companies remains significantly below the political goal of parity.
However, the current search results do not provide direct information on the specific impact of Public Corporate Governance Codes on the proportion of women in top management in municipal companies across Germany. To gain precise statistics or the latest empirical evaluations, official reports from German municipal associations, the Federal Ministry for Family Affairs, or specific research studies on public sector governance would be the best primary sources to consult.
In a recent study, it was found that the share of women in top management of municipal companies varies significantly across Germany. For instance, Hanover has the highest share of women in top management of municipal companies (56.3%), while cities in the western federal states have a much lower proportion (19.1%). This east-west gap in the share of women in top management of municipal companies has widened compared to the previous year.
Unfortunately, some cities, such as Ingolstadt, Oranienburg, Trier, Neunkirchen, St. Ingbert, and Volklingen, have no female executives in their municipal companies. The study leader, Ulf Papenfuß, stated that given the role model function of public employers, this finding should be particularly discussed. Clear rules for filling top positions, enshrined in guidelines for good corporate governance, could help to further increase the proportion of women in municipal companies.
Other cities, such as Weimar and Greifswald, have a higher share of women in top management of municipal companies compared to some cities with a similarly small number of companies. The 'scissors' between east and west are continuing to diverge. The values in municipal companies are also below the values of Dax-40 companies.
In conclusion, Public Corporate Governance Codes play a significant role in promoting gender equality in municipal companies across Germany. Despite the progress made, there is still a need for continuous efforts to increase the proportion of women in leadership roles and to bridge the east-west gap in representation.
- To maximize the impact of Public Corporate Governance Codes on gender equality in municipal companies, it would be beneficial to include vocational training programs that focus on women's health, such as workshops on menopause management, within these codes.
- In line with the promotion of health-and-wellness initiatives, municipal companies could consider offering wellness programs for their employees, particularly for women, as part of their efforts to foster a supportive environment and retain talent.
- As part of good corporate governance, the implementation of clear policies on personal-finance management and savings could contribute to the financial stability of women employees in these positions, aiding in their long-term growth and career development.
- To further the business objectives of municipal companies, directors could explore partnerships with local vocational training institutions to provide targeted training opportunities in science and technology for women, thus fostering an inclusive work culture and skill growth.
){kind=link}