Settlements with the management board in Germany

Damage claims against management on the rise

There has previously been strong resistance by members of the supervisory board to assert damage claims against long-standing and respected members of their company's management.

This no longer holds true as supervisory boards are conscious about their fiduciary roles and responsibilities to act in the best interest of the company, and potential personal liability risk if they fail to act.

The change in overall sentiment in recent years is a direct result of increased regulatory enforcement on a global level, extensive press coverage and ensuing pressure from stakeholders, customers and the general public to recover a company's economic losses.