Germany: female quotas now mandatory in corporate management bodies

On 12 August, and following a year in which large listed companies (> 2,000 employees) subject to co-determination laws (c.f. article No.12603) were given time to freely adjust to the new provisions, the German law imposing female quotas for management bodies  finally came into force. Going forward, non-compliant companies risk fines ranging between €50,000 and €10 million, or in other words the matter of female representation is being taken seriously.  Indeed engine manufacturer Deutz recently decided to reshape its four-person management team, relieving its CEO Frank Hiller of his duties and appointing Petra Mayer as Director of Production. The legislation does however that the company can wait until a male management body member’s contract comes to its end before replacing the position with a female. Between the vote on the text in 2021 and spring 2022, female management body representation in the companies concerned has risen from 15% to 20%, with more than half of the new female appointments coming from internal promotions.