Deutsche Bank will have to appoint women to about 50 percent of senior management vacancies to meet its new 2025 gender target, the Financial Times estimates.
Last week, Germany’s largest creditor promised to increase the share of women among its top 600 leaders to at least 30 percent by 2025, up from 24 percent so far.
Only a limited number of vacancies remain from these positions each year, however, this goal can only be achieved if the lender selects female candidates for at least every other senior job promotion, according to FT.
“Greater diversity among senior executives is a business need,” Michael Ilgner, Deutsche’s global human resources manager, told the Financial Times. “This will make us stronger, because there is a lot of evidence that more diverse teams are doing better, adapting faster to a changing environment.”
Ilner declined to comment on FT’s assessment, but said the new gender quota would not change the bank’s individual lease decisions. “Of course, we will choose the candidate who is most suitable for the position. We do not want to compromise on quality. ”
Germany’s largest lender announced gender targets next to green funding targets on Thursday wider drive to make environmental, social և governance principles “the new normal for Deutsche Bank”.
The self-imposed quota is stricter than the requirements of German law. From 2016, 30% of the seats on the Supervisory Board will be held by women, a rule that Deutsche adheres to. New legal requirements came into force earlier this year that listed companies have at least one board member.
Deutsche also stated that the goal is to increase the share of female staff in middle management, which includes thousands of CEOs, CEOs and Vice-Presidents, from 29% to 35% by 2025.
Ilner admitted that achieving the goals will not be easy. “Our targets are ambitious, but it is possible to achieve them if we follow up on the actions we have taken,” he said, adding that goals “close tracking of intermediate results” would help raise awareness of unconscious bias.
Measures include linking the salaries of senior Deutsche executives to those goals. “These have been some of the parameters that affect the variable compensation of our management,” said Ilgner, adding that Deutsche also supports interns and alumni to “increase the talent fund.”
Deutsche’s gender quota is roughly in line with its peers. Goldman Sachs aims to increase the share of female vice presidents to 40 percent by 2025, while HSBC has targeted 35 percent of “top management roles” to be taken by women in the same year. Credit Suisse և Bank of America did not publish gender equality targets.
Bayer, the agrochemical group of German medicines, said in February that it wanted to increase the share of women among the top 540 leaders to at least 33% by 2024.
In a speech to investors on Thursday, Ilgner acknowledged that Deutsche had so far been “free of the broader gender diversity goals we have set for 2019.” Over the past three years, the share of women in the senior management of the lender has largely shifted.
The ongoing reorganization of Deutsche has made it difficult to achieve the goals, he said. In mid-2019, the lender announced that 18,000 jobs would be created by the end of 2022, with a partial downturn in the investment banking system. After that, Deutsche reduced the number of foreign jobs and significantly reduced the number of jobs for the elderly.