BMW 2014 Annual Report Download - page 9

9 REPORT OF THE SUPERVISORY BOARD
compensation consultant, independent of both the Board of Management and BMW AG, was called upon to
provide expert advice and assist us in evaluating DAX compensation studies. After a careful review, we con-
cluded that the compensation of board members is appropriate and that the current compensation system
is functioning well. Further information on the compensation of Board of Management members is provided
in the Compensation Report (see chapter Statement on Corporate Governance).
Corporate governance The Supervisory Board and the Board of Management again jointly addressed the
topic of corporate governance within the BMW Group in 2014. In the most recent Declaration of Compliance,
issued in December 2014, the Board of Management and the Supervisory Board declared that the BMW
Group has and will continue to comply with all of the recommendations of the German Government
Cor-
porate Governance Code Commission published on 30 September 2014 (Code version; 24 June 2014), with
one exception, which relates to the presentation of information concerning Board of Management compensa-
tion using stipulated model tables. We remain committed to providing information on board compensation
that is both as comprehensive and comprehensible as possible, taking into account all relevant financial
reporting requirements. After careful consideration, we came to the conclusion that the additional use of the
tables recommended in the Code would not improve the desired level of transparency and readability of
the
Compensation Report.
As part of the joint examination of corporate governance within the BMW Group, the Board of Manage-
ment informed both the Personnel Committee and the full Supervisory Board on the status of implementa-
tion of the BMW Group’s diversity concept. This programme does not only focus on gender, it is also aimed
at promoting diversity in other areas, particularly in terms of cultural diversity and age mix within the work-
force.
We were also informed with respect to the proportion and number of women occupying positions
at various levels of management and deliberated with the Board of Management on the planned measures to
continue the process of raising that proportion, specifically at a senior level. Consideration was also given to
draft legislation relating to equal participation of women and men in management positions in Germany and
the potential impact of this legislation on the BMW Group.
With regard to its own composition, based on a detailed composition profile, the Supervisory Board has
decided upon specific appointment targets, which are discussed in detail in the Corporate Governance Report.
Based on a self-assessment, the Supervisory Board concluded that its composition at 31 December 2014
meets the targets set.
BMW AG has entered into contracts for personnel-related services with an external entity, in which mem-
bers of the Supervisory Board have an indirect participation. During the year under report, the Personnel
Committee approved an amendment to these contracts as a precautionary measure. None of the members of
the Supervisory Board with an interest in the relevant entity participated in this vote. Apart from this one
matter, there were no indications of potential conflicts of interest involving Supervisory Board members during
the financial year 2014.
Supervisory Board members are required to provide information on a quarterly basis of any significant
transactions they or other related parties (as defined by IAS 24), including close relatives and intermediary
entities, have with BMW Group entities.
We are fully committed to assessing and continuously improving the efficiency of the work of the Super-
visory Board and its committees. The Chairman of the Audit Committee and myself are therefore always
glad to receive comments and suggestions for improvement from Supervisory Board members. The formal
examination of the Supervisory Board’s efficiency is also treated each year as a separate agenda point
for discussion, without the members of the Board of Management being present. The efficiency examination