Finance executives at German blue-chip companies are facing stricter oversight and governance requirements following the overhaul of Germany’s DAX index of leading businesses, which will be expanded by 10 firms this month.
The changes were triggered by the scandal around electronic payments company Wirecard AG, which was kicked out of the index last year after it disclosed a $2 billion accounting hole. The revamp of the index comes a few months after the Act to Strengthen Financial Market Integrity, which tightened regulation for both companies and external auditors, became law in Germany.
The DAX index, which represents around $1.2 trillion in market value, will be expanded to include a wider scope of companies, including more pharmaceutical and retail firms.
tweaked its admission criteria by opting for market capitalization only as opposed to market cap and trading volume before the overhaul.