Chaotic Times, Stable Leaders - Navigating the Storm in the Finance Sector
Growth in Leadership Roles, With an Uptick in CEOs and CFOs
The world in 2024 was a tumultuous mix of wars, changing governments, and unpredictable political and economic events. Wars in Ukraine and Israel, the end of the Assad regime in Syria, political crises in Korea, Europe's industrial weakness, inflation control, and costly transformation processes were just a few of the challenges that businesses had to face. The US elections with the re-election of Donald Trump, threats of high tariffs, and even a potential NATO exit added to the uncertainty.
A Stormy Year
The year's ending saw its fair share of changes in the business world too. The proportion of women in the top management of the largest German stock market corporations reached a record high. Over a quarter of the CEOs in the 40 DAX companies are female, according to an analysis by the organization "Women on Supervisory Boards" (WoSB).
Three Women at the Helm
In the second half of the year alone, seven women were appointed to the executive ranks of the DAX. Notable among these appointments is Bettina Orlopp (54), who took over the leadership of Commerzbank after the departure of CEO Manfred Knof (59). Orlopp is the third woman to helm a DAX corporation, as the Italian bank Unicredit prepares to acquire the second-largest private bank in Germany.
Karin Rådström, a Swedish national, became the third woman at the helm of a DAX company in October. Rådström, previously the CEO of Scania, took over the leadership of Daimler Truck.
Sticking to the Familiar
Corporations in uncertain times prefer to fill executive positions from within their own ranks. This is evident in the appointment of Stephan Leithner (57) as the sole CEO of the DAX corporation Deutsche Börse, following the departure of Theodor Weimer. Similarly, Markus Kamieth, who has been working with BASF for 25 years, took over as the CEO in April.
Keeping the Show Running
In the fashion retail industry, Zalando saw the departure of co-founder and co-CEO David Schneider, who handed over his position to David Schröder (42), who was previously the COO. Schneider will continue his role as a board member, focusing on building partnerships and further developing the brand.
Unexpected Shuffles
Heinz-Jürgen Bertram (65), long-time leader of the fragrance and flavor company Symrise, retired early in February. Jean-Yves Parisot (60), a French national, was appointed as his successor.
At Hannover Re, CFO Clemens Jungsthöfel (54) will succeed CEO Jean-Jacques Henchoz (60) on April 1, 2025. Henchoz, who has a stellar track record, decided not to renew his contract and will leave by March 31, 2025.
Upheavals in the Executive Suite
Sartorius found an external successor for long-time CEO Joachim Kreuzberg in Michael Grosse (57). Grosse had previously served as the CEO of the Syntegon Group, a provider of process and packaging technology. Meanwhile, MTU Aero Engines had to find a successor as CEO Lars Wagner did not want to renew his contract ending in 2025. Johannes Bussmann, the former CEO of Lufthansa Technik and the current CEO of TÜV Süd, was appointed to take over.
Despite the uncertainties, many DAX companies prefer continuity in turbulent times, as seen in numerous contract extensions. However, contract tenures are shorter, particularly for CFOs. The average tenure for DAX CFOs is now just 4.6 years, compared to 7.7 years for CEOs who left in 2024.
In conclusion, the finance sector is experiencing a wave of changes, with companies relying on continuity in uncertain times. The frequency of changes, particularly on the CFO position, isn't a new trend, reflecting the need for agility amid geopolitical and macroeconomic uncertainty.
By Anna Perucki, Frankfurt.
- In the fashion retail industry, David Schröder, previously the COO of Zalando, became the new co-CEO after David Schneider's departure.
- Heinz-Jürgen Bertram, the long-time leader of Symrise, was replaced by Jean-Yves Parisot in February, while Clemens Jungsthöfel will succeed Jean-Jacques Henchoz as CEO of Hannover Re on April 1, 2025.
- Bettina Orlopp, who took over the leadership of Commerzbank following Manfred Knof's departure, is the third woman to helm a DAX corporation.
- In the reinsurer industry, Michael Grosse, previously the CEO of Syntegon Group, was appointed the new CEO of Sartorius, while Johannes Bussmann, former CEO of Lufthansa Technik and current CEO of TÜV Süd, was appointed to succeed Lars Wagner as CEO of MTU Aero Engines.
