Participation of women and men in executive positions

It is one of the core aims of Fresenius Medical Care and in the Company’s interest to have diverse governance bodies and a diverse overall workforce as this supports an inclusivework environment and builds the foundation for successful personal and organizational achievements. Diversity at Fresenius Medical Care is defined in a broad way, including – but not limited to –  age, gender, nationality, educational background and work experience. The goal of diversity is the inclusion of differing  perspectives and various aspects in the cooperation and decision-making in order to increase the understanding for the manifold requirements on a globally active company with heterogeneous groups of customers.

Based on this, the Company and the General Partner have adopted a diversity concept for the composition of the Management Board of the General Partner and the Supervisory Board of the Company reflecting this understanding and being part of the staffing processes. The individual qualification, e.g. expertise, skills and experience, however, continues to be the core selection criterion for the proposals to the General Meeting for the election of new members to the Supervisory  Board; diversity aspects are considered to ensure a comprehensive and balanced decision process. For preparation of any  nomination proposal, the respective competent governance body or the competent committee, as the case may be,  thoroughly evaluates the current composition of the governance body to be filled and carefully analyzes each potential candidate’s profile with regard to the diversity criteria.

It has further been decided to actively manage diversity in senior management levels below the Management Board. To this  end, diversity aspects such as gender are particularly taken into account in the evaluation of the “talent pipelines”. Additional reports, for example on the number and share of female junior talents in talent evaluation and the succession planning  process, support the focus on diversity in development planning and the preparation for filling vacancies. This serves to strengthen the pursued diversity concept and to identify suitable talents at an early stage. 

The Supervisory Board of Fresenius Medical Care AG & Co. KGaA is obliged to define targets for the representation of female members in the Supervisory Board as well as an implementation period and to report on the defined targets and their  achievement during the relevant reference period or in the event of a failure to meet these targets, on the reasons for this, as  part of the declaration on corporate governance. The definition of targets for the composition of the Management Board is for companies which, like Fresenius Medical Care, are organized in the legal form of a partnership limited by shares, is by contrast expressly not required. Likewise, also the Supervisory Board of Fresenius Medical Care Management AG is not  required to define targets for the Management Board, because Fresenius Medical Care Management AG is not in the scope of the relevant legal provisions. With two of in total seven members of the Management Board as of December 31, 2019 being female, the share of women in the Management Board of Fresenius Management AG amounted to around 29 % in 2019.

The Supervisory Board of Fresenius Medical Care AG & Co. KGaA has resolved on May 10, 2017 to set the target for the  representation of female Supervisory Board members at 30 % and has set an implementation period ending on May 9, 2022.  With two female members (33 %), the composition of the Supervisory Board in 2019 since the election of Dr. Dorothea Wenzel – as before until the resignation of Ms. Deborah Doyle McWhinney effective November 1, 2018 – was again in line with this target.

Pursuant to the Act on Equal Participation of Women and Men in Leadership Positions, the Management Board is obliged to define targets for female representation in the two top management levels below the Management Board as well as an  appropriate implementation period. In a first step, the Management Board on September 28, 2015, had resolved to define the two top management levels below the Management Board in relation to the participation of executives in the group-wide Long-Term Incentive Program (“LTIP”). In a second step, the Management Board resolved on January 13, 2016 upon targets for female representation for the two top management levels below the Management Board and upon the implementation  period to end on December 31, 2020. Notwithstanding the determination of these two management levels, the best indicator  for Fresenius Medical Care for women holding management positions worldwide is the total number of participants in the  group-wide LTIP. Compared with 2018, the share of women in these management positions slightly increased and amounted  to around 34 % at the end of 2019 (2018: 33 %).

The first management level includes all managers worldwide who directly report to a member of the Management Board and  participate in the LTIP. The target that shall be achieved by end of the implementation period on December 31, 2020 is 18.8  %. The share of female executives (as of December 31, 2019) was 23.0 % (2018: 21.1 %). The target of 18.8 % that shall be  achieved by end of the implementation period on December 31, 2020, hence, has at present already been surpassed by the Company.

The second management level includes all managers worldwide who directly report to a management executive of the first  management level and participate in the LTIP. The target (until December 31, 2020) is 28.2 %. The share of female managers  as of December 31, 2019 was 29.7 % (2018: 27.4 %). The defined target, thus, has also been surpassed for this  management level.

Overall, the recruiting and staffing practice of Fresenius Medical Care as well as the selection decisions regarding the hiring  and promotion to top management levels will also in the future be taken with a focus on the specific qualifications of the  individual. For this reason, the Management Board will select candidates for the top management of Fresenius Medical Care according to the candidate’s excellence and suitability for the specific role and function in such management positions,  regardless of their race, gender or other non-performance related attributes. However, the increased focus on diversity in  Fresenius Medical Care’s talent pipelines will further support an inclusive work environment and ensure that Fresenius  Medical Care’s employees continue to have equal career opportunities.