A Gender Quota for Top Executives: Diversity without Disruption

We study Germany’s landmark quota requiring major public companies to include at least one woman on their top executive teams. The quota increased female representation among top executives by about two-thirds. Firms largely recruited women from outside their networks and without prior public-company top-executive experience, choosing them over male candidates with similar profiles. Most were appointed to HR or niche roles, and there was no increase in female CEOs. We find no significant effects on the female share of managers in lower ranks, policies promoting gender equality, firm value, or performance. Overall, the quota boosted diversity without causing much disruption.