Smooth Operator: The Chair as the Drive Belt of the German Governance System

Abstract

Chapter 9 describes the distinctive context for the work of a chair in Germany, which has a two-tier board system and, for large companies, mandatory employee representation on the supervisory board. Board leaders deal with these and other challenges by being very diligent with regard to the law and corporate governance guidelines, focusing the board’s work on a limited number of issues, maintaining order and discipline in the boardroom, and making specific efforts to reach out to employees’ representatives on the board. The COVID-19 pandemic increased the intensity of chairs’ work and their informal interactions with senior managers and board members. Board routines, however, stayed unchanged for most companies.