BMW 2013 Annual Report Download - page 9

now complies with all relevant recommendations of the German Government Corporate Governance Code
Commission. In the most recent Declaration of Compliance, which was issued in December 2013, the
Board of Management and the Supervisory Board resolved that the BMW Group should comply with the
recommendations of the German Government Corporate Governance Code Commission published on
15 June 2013 (Code version; 15 May 2013), without exception and with effect from the applicable date.
Again in 2013, in both the Personnel Committee and the full Supervisory Board we examined both the
structure and the amount of the compensation that Board of Management members receive. In order to vali-
date the suitability of the system and the appropriateness of results, we reviewed the comparable trends for
business performance and Board of Management compensation on a multi-year basis. We also gave general
consideration to the development of the remuneration of executive managers and employees of BMW AG
within Germany over the course of time. Moreover, we sought the expertise of an external compensation
consultant, independent of both Company and Board of Management, and evaluated compensation studies
for the DAX. To accommodate the desire for a consistent remuneration model throughout the Group, the
Personnel Committee also made enquiries into the structure of management remuneration and the status
of any planned changes to that structure. Relevant points were discussed by the full Supervisory Board,
where, after deliberation, it was decided that a fundamental change to the Board of Management compensa-
tion system is not required.
Pension entitlements were also reviewed. Based on a proposal put forward by the Personnel Committee,
and after discussion with an independent compensation consultant, with effect from the financial year
2013 we resolved to increase the extent to which contributions for Board of Management members are stag-
gered. Future calculations will be based on the length of service on the board as well as previous activities
and individual amounts will be increased to take account of benchmark developments in the DAX. For these
purposes, we considered the estimated impact on compensation as a whole and on the probable future level
of pensions.
In the course of implementing the recommendations of the German Government Corporate Governance
Code Commission, we set caps for the individual components and the total amount of compensation for
Board of Management members with effect from the financial year 2014. The target compensation levels for
Board of Management members remain unchanged. The employment contracts of current Board of Manage-
ment
members were amended, with the agreement of those members, with effect from 1 January 2014.
Detailed information with respect to Board of Management compensation, including a summary of remunera-
tion caps, is shown in the Compensation Report.
In conjunction with the joint examination of corporate governance, the Board of Management informed
us (both in the Personnel Committee and in the full Supervisory Board) on the status of implementation of
the diversity concept throughout the BMW Group, a concept which is not merely restricted to a focus on gen-
der, but which is aimed at promoting diversity in other areas, particularly in terms of cultural diversity and
the international character of the workforce. In this context, the Board of Management informed us regarding
the percentage of women occupying management positions and changes thereto, in particular at senior
management level and executive level below the Board of Management, as well as the planned measures to
increase this percentage.
With regard to its own composition, based on a detailed composition profile, the Supervisory Board
decided upon specific appointment goals in 2010, which are discussed in detail in the Corporate Governance
Report. These appointment goals were not changed in 2013. No conflicts of interest arose
during the year
under report on the part of members of either of the boards. Significant transactions with Supervisory
9 REPORT OF THE SUPERVISORY BOARD