The appointment of Evelyn Palla as the new chief executive of Deutsche Bahn marks a significant turning point for the state-owned railway company, which has been grappling with substantial operational and financial challenges. Palla, who previously headed the company's regional transport division, takes the helm following a long line of male predecessors including Hartmut Mehdorn, Rüdiger Grube, and Richard Lutz. Her appointment comes at a critical juncture for the struggling railway operator, raising questions about corporate leadership patterns during times of crisis.
Management experts point to Palla's appointment as a potential example of the 'glass cliff' phenomenon, a theory suggesting women are more likely to be appointed to leadership positions during organizational crises. Research by Max Reinwald from the University of Mannheim indicates that the probability of women being appointed to top positions during crises is approximately 50 percent higher than during stable periods. This statistical pattern has been observed across multiple corporate leadership transitions, though female appointments remain relatively rare overall.
Reinwald's research, conducted with colleagues from the University of Konstanz, analyzed 26,156 leadership changes at publicly traded US companies between 2000 and 2016. The study found that only 7.4 percent of these leadership transitions involved women, though the large sample size makes the findings statistically robust. According to Reinwald, companies facing crises often appoint female leaders as a signal of their commitment to change, particularly in organizations with historically male-dominated leadership like Deutsche Bahn.
The glass cliff effect appears to vary depending on broader societal context and corporate visibility. Jürgen Wegge, an organizational psychologist from Dresden University of Technology, notes that the phenomenon exists in Germany but fluctuates with public discourse. During periods of intense media focus on gender quotas between 2011 and 2015, for instance, the glass cliff effect appeared weaker. As Deutsche Bahn faces intense public scrutiny over its operational challenges, Palla's leadership will be closely watched by both corporate governance experts and gender equality advocates.