Adidas 2002 Annual Report Download - page 100

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98 REPORTING CORPORATE GOVERNANCE /// SUPERVISORY BOARD REPORT
Supervisory Board Report /// DEAR SHAREHOLDERS /// In the year under review, the
Supervisory Board dealt in detail with the business, financial
position and strategic orientation of the adidas-Salomon
Group. It regularly advised the Executive Board in matters
concerning the running of the business and oversaw the
management of adidas-Salomon AG. The Executive Board
kept the Supervisory Board regularly informed about the
position of the Group, corporate policy and matters relating
to major business transactions. The Supervisory Board
performed its tasks laid down by law and the Articles of
Association and was directly involved in all decisions of funda-
mental importance. The Chairman of the Supervisory Board
also maintained regular contact with the Executive Board
between the Supervisory Board meetings and was kept
informed about the current business situation.
In five joint meetings with the Executive Board, the Super-
visory Board reviewed in detail the business and financial
development of the adidas-Salomon Group as well as the
individual operational units and the major Group companies.
The external auditor attended the annual financial statements
meeting of the Supervisory Board and the meetings where
the quarterly financial statements were presented. The
meeting attendance rate of the Supervisory Board members
in the year under review was 98%. No Supervisory Board
member participated in less than half of the meetings. The
Supervisory Board approved urgent transactions by way of
two resolutions by circular vote.
MAIN TOPICS COVERED BY THE SUPERVISORY BOARD ///
At the beginning of the year, the Supervisory Board approved
the budget and investment plan for the adidas-Salomon
Group. In March, the Executive Board presented to the
Supervisory Board the main focus of the future marketing
strategy and the strategic orientation of the Group. In May,
the Supervisory Board gave its approval to issuance of the
fourth tranche of the stock option plan (MSOP) for manage-
ment executives of adidas-Salomon AG and its affiliated
companies. The development of sales and earnings for the
Group and the individual operational units was the subject
of regular consultations. In August, the Executive Board
informed the Supervisory Board in detail about business
development and the future business strategy in the USA. The
new Sport Style division developed with Yohji Yamamoto was
the subject of review by the Supervisory Board in November.
Furthermore, the Supervisory Board approved the planned
acquisition of the Maxfli brand (golf balls and golf accessories)
from Dunlop Slazenger Group Ltd.
The Executive Board and the Supervisory Board welcome
the German Corporate Governance Code. They have discussed
the Code in depth. In the year under review, the Executive
Board and the Supervisory Board established a working
group to develop Corporate Governance Principles for adidas-
Salomon AG. In December, the Executive Board and Super-
visory Board issued a joint Declaration of Compliance on the
German Corporate Governance Code.