Yet it does attempt to improve Germany's two-tier board system in particular, by making supervisory boards better guardians of shareholders' interests, despite the presence on these boards of workers' representatives and ex-managers.
Outside directors made up about 10% of all board members for the TSE top-tier companies compared with 70% in the U.S., 50% in the U.K. and more than 30% in South Korea, the institute said.
This is in contrast to the two-tier boards of German companies, which have an executive management board overseen by a non-executive supervisory board.