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German firms set goals for more women in management


By Sarah MarshBERLIN, Oct 17 (Reuters) - Germany’s 30 top companies set voluntary targets on Monday to raise the number of women in leadership positions, in the hope of averting legally imposed quotas as a campaign to smash the glass ceiling gains momentum.While the political leader of Europe’s largest economy is a woman, corporate management is still heavily dominated by men. There was not a single woman on the management board of a blue-chip firm until 2008, and today only 3.7 percent of top German managers are female.Chancellor Angela Merkel’s cabinet is at odds over whether legislation is the right tool to help women penetrate the commanding heights of business. Both Family Affairs Minister Kristina Schroeder and Merkel have so far rejected the idea of setting a legal quota.Schroeder welcomed Monday’s voluntary targets as serious progress, but Labour Minister Ursula von der Leyen called them “insufficient” and suggested a legal quota may be necessary.Some other European countries, such as Norway, France and Spain, require top listed companies by law to ensure at least a third of top management is female.Germany’s blue-chip companies, listed on the DAX index, published striking data on the representation of women at leadership levels as well as the new targets.”We will let ourselves be publicly assessed year by year on what we have actually achieved,” said BMW’s personnel manager Harald Krueger, on behalf of firms in the DAX index.In March, Germany’s blue-chip companies agreed to set voluntary targets to boost the number of women at management levels and on Monday, they published their concrete aims, varying from company to company.Sporting goods maker Adidas (ADSGn.DE) set itself the most ambitious target of 32-35 percent leadership positions going to women by 2015. Some 48 percent of its staff are women.Healthcare conglomerate Fresenius was the only company to refuse to set a numerical target, saying it would “continue to make qualification and not gender or other personal attributes the criterion for selecting staff”.Some 71 percent of the company’s German staff are women, while 19.1 percent of its German leadership positions are held by women. The firm said it would continue to raise this level.Von der Leyen noted that the blue-chip firms did not propose targets for raising the proportion of women at the very top executive levels — currently just 3.7 percent.”This is a seriously below-grade number for the 21st century, it just cannot continue like this,” she said.Monday’s data threw up some striking numbers. While 61.2 percent of retailer Metro’s German staff are women, just 14.9 percent of leaders are women.

Goldman Sachs’s exceptionalism takes another knock


By Antony Currie and Rob Cox The authors are Reuters Breakingviews columnists. The opinions expressed are their own. The exceptionalism of Goldman Sachs took another knock this week. For a brief period on Wednesday, shares of the Wall Street firm traded at a bigger discount to book value — or assets minus liabilities — than those of megabank rival JPMorgan. This rarely happens and suggests that investors fear the bank’s franchise, both as a trader of securities and financial adviser to corporations and governments, is somehow damaged. Compared to other banks, Goldman historically commanded a premium valuation relative to its book value. That has traditionally given the bank a strong defense against critics of its business model, the assets on its books or indeed its management team. And for years this has mostly been deserved. For one, Goldman marks its assets to market prices more aggressively than rivals. Second, Goldman’s return on equity, a measure of its ability to make money above its cost of capital, usually has bested rivals. Take the boom years from 2005 to 2007. Goldman cranked out an average annual ROE of 29 percent. JPMorgan came in around 11 percent. As a general rule of thumb, if Goldman’s weighted average cost of capital was 10 percent, then those returns on equity justified a share price trading at up to three times its book value. Yet last week, Goldman shares fell below $95, taking it below 72 percent of its June book value of about $130. At certain points, that was bang in line with, or even below, investor perception of JPMorgan’s worth. To be fair, this convergence was brief, especially thanks to JPMorgan’s disappointing third-quarter results. But the last time Goldman shares crossed that line for a prolonged period was in late 2008, when Goldman’s very existence was under threat. Survival isn’t the issue this time round. But Goldman’s ability to generate returns above the cost of funding itself is clearly not being taken for granted by shareholders. True, compared to Morgan Stanley, Bank of America, Citigroup and others, Goldman’s valuation is still quite exceptional. But a sustained belief by investors that JPMorgan’s broader spread of retail and other businesses offers more of a cushion for shareholders wouldn’t be lost on Goldman’s board, no matter how good or bad its results may be.

Candidate Romney reaps $14 million in latest quarter


The third fund-raising quarter is typically weak, largely due to the summer vacation season.President Barack Obama’s campaign reported raising $70 million in the third quarter, including funds raised for the Democratic National Committee.Romney is among the leaders in the race for the Republican nomination to oppose Obama’s bid for re-election next year.

Candidate Romney reaps $14 million in latest quarter


The third fund-raising quarter is typically weak, largely due to the summer vacation season.President Barack Obama’s campaign reported raising $70 million in the third quarter, including funds raised for the Democratic National Committee.Romney is among the leaders in the race for the Republican nomination to oppose Obama’s bid for re-election next year.