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Quota for Women in Senior Management
Bayer is targeting better gender balance in management. To achieve this, the company has set voluntary goals in addition to the statutory quotas and is resolutely pursuing both.
At the end of 2018, the ratio of women to men worldwide at the management levels at Bayer was 40 percent to 60 percent.
Under the Law on Equal Participation of Women and Men in Leadership Positions in the Private and Public Sector, certain companies in the Bayer Group are obligated to set targets for the proportion of women on the Supervisory Board, on the Board of Management or at executive level, and at the next two levels of management. On September 30, 2015, we for the first time formulated target ratios for the affected companies of the Bayer Group in the corporate structure valid at the time, and set ourself the goal of achieving said ratios by June 30, 2017. After reaching this deadline, we assessed these targets and extended them through June 30, 2022, for the companies of the now reorganized Bayer Group.
Women on the Supervisory Board
The Supervisory Board of Bayer AG is subject to a mandatory quota for women of at least 30 percent of new appointments from 2016 on. Our Supervisory Board consists of 20 members, including six women since April 28, 2017, the date of the Annual Stockholders’ Meeting 2017. We thus met the statutory quota of a 30 percent ratio of female Supervisory Board members.
Women on the Board of Management
The goal of adequate representation of different age groups, while also taking into account the experience required for Board of Management positions, was achieved. The ages of the members of the Board of Management were relatively evenly spread across a range of 49 to 62 years as of December 31, 2018. Three of the seven members of the Board of Management are citizens of a country other than Germany. All members of the Board of Management have amassed many years of career experience outside Germany. The members of the Board of Management also have diverse educational and professional backgrounds: Some have completed various business-related courses of study or training, while others have studied in various scientific fields including medicine.
Women at the First and Second Management Levels below the Board of Management
The Act set the first quota for the number of women at the first management level of Bayer AG below the Group Board of Management at 20 percent by mid-2017. For the second management level, the first target established in 2015 was 28 percent.
On June 30, 2017, the statutory deadline for the initial quotas, the ratio of women at the first management level of Bayer AG was 17 percent. As of June 30, 2017, the ratio of women at the second management level was 21 percent. However, neither the number of employees nor the organizational structure of Bayer AG are the same as when the targets were formulated in 2015 due to the transfers of undertaking as part of the reorganization of the Bayer Group. On the date when the target was set, Bayer AG had some 700 employees in Germany; since the Group reorganization took effect on January 1, 2017, the company has had about 20,000 employees due to the transfer of the differently composed workforces of several operating companies. Due to these changes, the originally formulated targets were not able to be achieved.
Besides Bayer AG, nine of the Group’s other companies based in Germany were bound by this legislation when the first targets were formulated on September 30, 2015. These were the operating companies Bayer Pharma AG and Bayer CropScience AG, the two service companies Bayer Business Services GmbH and Bayer Technology GmbH, and four smaller companies specializing in certain services. In these Group companies, the proportion of women at the first two levels of management below the Board of Management or executive level corresponded with the targets set for September 30, 2015. This left targets of between zero and 23 percent for these companies by June 30, 2017.
The respective target attainment for the remaining Group companies is given in the following table. Within these companies as well, there have been in some cases considerable changes in the organizational structure and size of the workforce since the targets were first formulated due to the reorganization; the newly established operating divisions within Bayer AG are not absolutely identical with the previous subgroups.
New Targets for June 30, 2022
As a result of the reorganization of the Bayer Group following the carve-out of Covestro AG (formerly Bayer MaterialScience AG) in 2015, all employees of Bayer Pharma AG, Bayer CropScience AG and Bayer Technology Services GmbH transferred to Bayer AG, in moves effective January 1, 2017 (Bayer Pharma AG and Bayer CropScience AG) and July 1, 2016 (Bayer Technology Services GmbH), respectively. It is no longer possible to maintain the target ratios for these companies.
The remaining Group companies bound by the legislation have set new targets for the ratio of female employees at the first and second management levels below the Board of Management that they will aim to meet by June 30, 2022.
In the now much larger Group parent company Bayer AG, the ratio of women at the first management level below the Board of Management is targeted to be 20 percent in mid-2022. For the second management level below the Board of Management, a ratio of 25 percent female employees is targeted by that date. Due to the significantly higher number of corresponding positions as a result of the transfers of undertaking to Bayer AG, it is not reasonably possible to compare the new target ratios with those that applied until mid-2017.
For the next largest Group company, Bayer Business Services GmbH, it is planned to substantially increase the target ratio of female employees at the first management level below the executive level from 9 to 21 percent. For the second management level, the targeted ratio of female employees will double from 14 percent by 2017 to 28 percent by mid-2022.
Bayer Vital GmbH, which markets drug products of the Consumer Health and Pharmaceuticals divisions and veterinary pharmaceuticals of the Animal Health business unit in Germany, has set a target of 20 percent for the ratio of women at the first management level below the executive level by mid-2022. At the second management level, Bayer Vital aims to increase the ratio of female employees from currently 20 to 22 percent. Bayer Gastronomie GmbH is maintaining its target ratio of 20 percent for the first management level below the executive level, but aims to raise the ratio of female employees at the second management level from currently 15 to 25 percent by mid-2022.
Successful Voluntary Efforts for Increased Balance in Management Worldwide
Beyond these statutorily prescribed targets for the ratio of women in management positions at German companies, Bayer for many years has voluntarily endeavored to achieve more balance in management at the Group level. Already in 2010, Bayer set itself the target of raising the proportion of women at the five highest management grade levels throughout the Group toward 30 percent by the end of 2015. At the end of 2016, the ratio of women employed in this management segment worldwide was more than 31 percent. We thus met the goal we had set for the Bayer Group – and by 2020 we would like to further increase this ratio to 35 percent (excluding Covestro in each case).
The Group will continue to pursue this extremely successful strategy for achieving a better gender balance in the future. Bayer will also carry on basing its strategy on its own definition of management levels because these correspond precisely with the structure of the Group and cover a far broader spectrum of management than is defined in national legislation. Thus Bayer will continue to publish the results of its own Group-wide undertakings in its reporting in addition to references to the targets set in German law.
Targets for the Ratio of Women in the Affected Bayer Group Companies
|Company||Target female proportion July-2017 in percent||Effective female proportion July-2017 in percent||Target female proportion July-2022 in percent|
|Bayer AG||one female
1st management level
2nd management level
* statutory quota