Archive for October, 2011
German politicians – especially female politicians – rally to increase the share of women in corporate boards. However, this does not mean that they put forward an initiative or some kind of incentives for women to get themselves more prepared and more willing to reach top-level jobs. No. German politicians do what they think they do best, they regulate, they tell others how to behave and especially how not to behave. And with every regulation, German politicians strangle individual freedom a bit more. Mind, all this is done for equality’s sake (not equity)- at least this is what they tell you.
The German minister for quite a lot of things actually, that is for women, youth, family and elderly (maybe I got the wrong order), Ms. Schroeder, plans to tell corporations how to man their boards, i.e. how to woman their boards: Mrs Schroeder wants to see more women in corporate boards – regardless of past merits. (I would like to see myself in more boards, maybe I should apply for a quote?) Accordingly, German corporations will be subjected to a law: If they fail to meet a certain share of women in their board a fee of 25.000 Euros will be due. In other words, state regulation, not shareholders will have a say on board composition. Shareholders simply get stripped of one of their rights, namely to determine board composition.
Forget about effort and performance, forget about all the tons of papers written about the best way to recruit skillful CEOs or skillful board members (and about how to overcome problems like moral hazard, once they are installed in their position). That’s history. From now on, biology will do the trick. Get women in the board and all is fine. This mantra rules the campaign for more women in corporate boards or in leading positions as the EU dubs it. Biology, or the biological imperative that a sizeable share of women in corporate boards improve profits is the new racism of our times (- and it violates individual rights, the rights of men, because they can try as hard as they like, they won’t climb the ladder because they have the wrong gender, the rights of women because once they form a part of corporate boards, nobody will attribute this “success” to effort, performance, knowledge or any other individual feature) .
The campaign to bring more women with their snout in the corporate trough is a religious crusade. There is not a single reason given as to why more women in corporate boards is an improvement. There is not a single shred of evidence that boards with a considerable share of women make higher profits nor is any other reason than “equality” given. Equality is a religious dogma and anyone who dares to question the dogma, asking for reasons and benefits, will be treated as a heretic. Accordingly, another German minister, Mrs von der Leyen, threatens to publicly denounce corporations that do not fill their boards with numbers of women deemed suitable by the very minister. So we’re back to the dark ages and it won’t take long before to criticize German politicians and question their approach will end with the critic being burned at the stake. Whether the burning at the stake is literally or metaphorically, time will tell, history, however, suggests the former.