Churn and Turn: Executive Shake-Ups in the DAX World
CEO and CFO positions are showing a growing trend.
2024 was a rollercoaster year, politically and economically. Wars in Ukraine and Israel, changes in government in Germany and France, Europe's industrial weakness, and the rise of Trump for a second term in the U.S., just to name a few events. But the business world wasn't immune either, as personnel changes rocked the boat in the iconic stock market companies.
A Year Like No Other
In an unprecedented shift, the proportion of women in top management of the largest German stock market companies hit a new high. Over a quarter of the CEOs in the 40 DAX companies are now female, according to an analysis by the WiN organization.
Three at the C-Suite Pedestal
The second half of 2024 saw seven women ascend to the management of DAX companies. For the first time, three women lorded over a DAX company: Bettina Orlopp (54) of Commerzbank, Belén Garijo, Merck's CEO since 2021, and Karin Rådström, who took the helm at Daimler Truck in October.
A New Kid on the Block
Also in October, the newest addition to the DAX roster was 45-year-old Swedish engineer, Karin Rådström. Formerly Scania's boss, she took over from Martin Daum, who'd served as Daimler Truck's CEO since 2017.
A Duo No More
In a neat, albeit brief, collaborative act, Bettina Orlopp and Manfred Knof unveiled Commerzbank's return to the DAX. Orlopp took the reins after Knof's departure in early October, with Unicredit acquiring a 28% stake in the institution. However, Knof and Orlopp introduced the return to the DAX as a team. Orlopp would take on the fight for Commerzbank's independence without Knof.
Shuffling the Deck Chairs
Companies, in times of uncertainty, are focusing on continuity. This is evident in the new leadership of BASF, as Markus Kamieth (53) took over in April, having been with the world's largest chemical company for 25 years. His predecessor, Martin Brudermüller, called it quits after 36 years.
Stability in the Aisles
Both Siemens and Rheinmetall have decided to keep their leaders for the foreseeable future, with Roland Busch (59) leading Siemens into the next decade and Armin Papperger's contract as CEO of Rheinmetall extended by five years from January 1, 2025.
CFO Burnout?
The average tenure for DAX CFOs is a mere 4.6 years, while outgoing DAX CEOs in 2024 had an average tenure of 7.7 years. Four CFOs from DAX companies announced their resignation in 2024: Kristin Neumann from Brenntag, Olaf Schick from Continental, Dagmar Steinert from Rheinmetall, and Sandra Dembeck from Zalando. It seems the CFO position has become a pressure cooker in tough economic times.
The CFO Hot Seat
Eon is making significant changes to its board, as Marc Spieker will become Chief Operating Officer in the middle of the year, and Nadia Jakobi, who currently heads the trading business, will take over the finance department in the wake of Kristin Neumann's departure from the Brenntag board. Dagmar Steinert will also leave Rheinmetall by the end of 2024, with Klaus Neumann taking her place.
Zalando is also on the hunt for a new CFO, as Sandra Dembeck has decided not to renew her contract, which expires at the end of February. A successor is being sought.
The Board, a Reflection of the Times
In this shifting landscape, while companies often rely on proven candidates, the turnover rate on the CFO position is particularly high. This could be a result of operational demands from economic volatility and digital transformation, burnout risks from crisis-management roles, regulatory complexity amid new ESG and tax reporting requirements, or CEO succession pipelines prioritizing finance leaders for top roles.
- In the year 2024, a quarter of the CEOs in the 40 DAX companies were women, according to an analysis by the WiN organization, marking an unprecedented shift in top management.
- Three women, Bettina Orlopp, Belén Garijo, and Karin Rådström, held the CEO positions in DAX companies by the end of 2024, a first in the market's history.
- Karin Rådström, a 45-year-old Swedish engineer, joined the DAX as the CEO of Daimler Truck in October 2024, replacing Martin Daum who had served since 2017.
- The average tenure for DAX CFOs is only 4.6 years, according to recent data, significantly shorter than the 7.7 years for outgoing DAX CEOs in 2024, indicating a high turnover rate in these positions, especially in challenging economic times.
