BMW 2011 Annual Report Download - page 9

event of potential crisis scenarios. We encouraged the Board of Management to aim for balanced and profit-
able growth and to maintain its prudent planning of fixed costs.
In a second part of our meeting in autumn we held intensive discussions with the Board of Management
regarding specific technical innovations, questions of product strategy and new concepts for both vehicles
and services. In this context, the members of the Supervisory Board had the opportunity to test-drive some
of new BMW and MINI brand models as well as the latest hybrid and electric vehicles. We were also given an
update on the current status of the BMW i 3 and BMW i 8 projects with the aid of concept models and provided
with background knowledge on the new subject of BMW i Mobility Services. We also discussed potential
future applications of Connected Drive, i. e. the networking of driver, vehicle and environment to enhance
convenience, infotainment and safety.
As a special topic, the Board of Management provided us with an overview of the current status of the
BMW Group’s pension obligations, including pension asset management and related risk management issues.
We were also informed about the status of the externalisation of pension obligations.
Towards the end of the year we carefully considered the annual budget for the financial year 2012 put
forward by the Board of Management and deliberated on a number of scenarios, taking into account the cur-
rent difficulties in predicting future macroeconomic developments.
At the joint meeting in December the two boards deliberated on corporate governance at the BMW Group
and adopted a new Declaration of Compliance, the wording of which is included in the Corporate Governance
Report. The recommendations made by the Government Commission on the German Corporate Governance
Code (code version of 26 May 2010) published on 2 July 2010 continue to be complied with without excep-
tion. This includes the recommendations of the Code regarding long-term succession planning for the Board
of Management taking diversity factors into account. No new decisions with regard to the composition of
the Board of Management were required to be taken in 2011. In preparation for future personnel decisions,
the Personnel Committee and the Supervisory Board obtained information from the Board of Management
with regard to the proportion of, and changes in, management positions held by women, in particular at
senior management level and at executive level below the Board of Management. The Supervisory Board con-
curred with the Board of Management that, alongside gender diversity, cultural diversity also serves the
best interest of the Group and should be additionally fostered.
With regard to its own composition, based on a detailed composition profile, the Supervisory Board
decided upon specific appointment goals in 2010, which are contained in the Corporate Governance Report
(page 164). These goals were not changed in 2011.
Examining and improving the efficiency of the Supervisory Board’s work is seen as an ongoing task and
was the subject of a separate discussion held by the full Supervisory Board. Preparations for the discussion
were based on the results of a questionnaire devised by the Supervisory Board and distributed in advance of
9 REPORT OF THE SUPERVISORY BOARD