BMW 2012 Annual Report Download - page 8

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In preparation for our deliberations on the Long-term Business Forecast, the Board of Management
explained the principles applied for planning global added value within the Group in the period up to 2024
as well as the targets set for the configuration and production capacities of the Group’s plants during this
period. Additionally, a raft of measures was presented designed to help limit the scale of investment expenditure
to be incurred in connection with the expansion of production capacities.
Again in 2012, in both the Personnel Committee and the full Supervisory Board, we examined the
com-
pensation of Board of Management members for appropriateness. In doing so, we also evaluated compensation
studies for the DAX and sought the expertise of an external compensation advisor who was independent of
both the BMW Group and the members of the Board of Management. Adopting a proposal of the Personnel
Committee, no changes were made to the Board of Management compensation system in 2012. The rules
governing the purchase of vehicles and other Group products and the use of vehicles by Board of Management
members were brought into line with those already in place for top-level department heads. Detailed infor-
mation on the compensation of Board of Management members can be found in the Compensation Report
(page 170 et seq.).
In the second half of the year we again convened for a two-day meeting primarily devoted to corporate
and product strategy on the one hand and to the Long-term Business Forecast on the other.
In the first part of the meeting we discussed with the Board of Management the findings of its annual
review of the Group’s Strategy Number ONE. In light of current developments, this review included a renewed
examination and assessment of the impact that could potentially arise from various crisis scenarios of varying
intensity in regions significant for sales performance.
In its report, the Board of Management also considered the strategic planning of worldwide production
capacities. In addition to the expansion of production capacities at the Spartanburg and Leipzig plants, the
Board of Management also presented its plans for future production facility and capacity expansion at other
locations. The Supervisory Board fully supports the Board of Management in its endeavours to exploit growth
opportunities in specific regions, whilst at the same time maintaining a well-balanced distribution of sales and
value added across the world’s markets.
In conjunction with our deliberations on product strategy, the Board of Management and the Head of
Design for the BMW Group presented and elaborated on selected vehicle projects. Furthermore, in a dis-
cussion
with the head of the i product line, we were informed of the Group’s current activities and the needs
of customers in the field of electromobility and given an insight into some of the solutions arrived at so far,
such as for the charging of batteries at home and on the road. At our request, other related service concepts
currently being developed by the BMW Group were explained to us.
We also took a close look at the latest advances being made in the field of emission reduction and avidly
discussed, together with the Board of Management both the technical and the entrepreneurial challenges
that need to be mastered, particularly those ensuing from regulatory provisions or customer expectations with
regard to urban mobility.
The Supervisory Board remains firm in its conviction that the strategic direction set by the Board of
Management for the BMW Group is robust and sustainable.
In conjunction with vehicle presentations, Supervisory Board members also had the opportunity to drive
a number of BMW, MINI and Rolls-Royce vehicles, including some BMW models equipped with hybrid and
electric drive systems.