Promotion prospects: "Excel instead of excellence": Three factors determine who makes it to the top in German companies

In German companies, rising to the very top is increasingly determined by three key factors. First, internal promotion through a "Kaminkarriere" - a career ladder that often leads to positions in multinational conglomerates and major corporations. Nearly two-thirds of DAX 40 CEOs were promoted internally, with a homogenous profile of male, middle-aged German citizens with a Wirtschaftsstudium (business degree).

Second, the distinction between management and leadership is blurred, with many top managers excelling at administration rather than inspiring and innovating. Third, external perspectives and fresh ideas are underrepresented in leadership roles, with external candidates often preferred over internally promoted executives. These three factors contribute to stagnation in German firms, with talented individuals being overlooked and organizational vitality suffering.