The Wirecard scandal exposes structural flaw of German boards
Does the country’s two-tier board system protect investors’ interests, asks Chris Hughes
One more item for Germany’s to-do list following the Wirecard scandal: re-assess the country’s two-tier board system.
German companies are run by executives on a management board. Above them sits a supervisory board of non-executives, whose explicit duties are appointing, supervising and advising the managers. A long-standing question is whether these supervisory boards properly protect investors’ interests...