"Not a single DAX company has its headquarters in the East"

Only 10.1 percent of Germany's elite come from the new federal states, even though East Germans make up nearly 20 percent of the country's total population. In an interview with the magazine "Personalwirtschaft," Kathrin Mahler Walther explains why leadership positions in Germany are still primarily held by West Germans.

"The reasons for this are manifold, ranging from stereotypical perceptions of the East German population to structural disadvantages," explains the EAF Managing Director. Since the dissolution of the state-owned combines and the privatization of state-owned enterprises in the early 1990s, the East German economy has been characterized by small and medium-sized enterprises. Every company listed on the German Stock Index (DAX) is headquartered in the old federal states.

Furthermore, Kathrin Mahler Walther points out that unconscious thought patterns, so-called Unconscious Bias, can lead to East Germans being perceived as less capable or competent.

Everyone in a company, especially HR managers and executives, should be sensitized to the impact of these unconscious thought patterns, and all processes should be reviewed for discrimination. This also applies to the increasingly used artificial intelligence applications. These are not automatically neutral either; they may potentially perpetuate existing selection patterns. Companies must do everything in their power to foster corporate cultures where people can be themselves and contribute their full potential.

Further information

The Personalwirtschaft magazine can be found at well-stocked newsstands or you can order it online here.