Mercedes 1999 Annual Report Download - page 116

REPORT OF THE SUPERVISORY BOARD
110
The Supervisory Board and the Board of Management met
in four ordinary and two extraordinary meetings during
the 1999 business year to discuss the state of the company,
the progress of integration, the strategic development of
the divisions and various other issues.
The Presidential Committee met three times in 1999 to discuss
personnel issues of the Board of Management as well as other
questions concerning the company’s corporate governance.
The Financial Audit Committee convened twice with the inde-
pendent auditors to discuss in detail the financial statements
for 1998 and the Half-Year Financial Statement for 1999. The
committee also addressed the issue of commissioning KPMG
Deutsche Treuhand-Gesellschaft AG a financial auditing firm
with the final audit and determined the audit emphasis for the
business year. The Mediation Committee, a body required by
German industrial co-determination law, was not required to
convene.
The Board of Management kept the Supervisory Board con-
tinuously informed of business developments as well as the
financial state of the company and its business units through
monthly reports and discussions during the various meet-
ings. The Board of Management also reported in writing to
the Supervisory Board on any extraordinary activities. In
addition, the Chairman of the Supervisory Board was kept
informed through numerous discussions with the Board of
Management throughout the year.
Integration issues, particularly in the automotive divisions,
dominated the agenda of the Supervisory Board in 1999. A
further key issue was the strategic development of the other
businesses of the Group. Questions relating to the product
portfolio and regional strategies in the automotive business
were discussed as well as the expansion of the IT-activities
of the Group and the contribution of business units into
powerful joint ventures like the Astrium space company.
In its February 1999 meeting, the Supervisory Board voted
to increase its rights under existing corporate law by sub-
jecting a catalogue of actions to its approval. At the meeting,
the Supervisory Board also discussed and approved the
medium-term corporate planning for the period 1999-2001, in-
cluding planning for investment, human resources and earn-
ings, as well as the refinancing limit of the company. The
decision to acquire the remaining stake in Adtranz created the
conditions necessary for implementing a comprehensive re-
structuring program designed to improve Adtranz’ competitive
position over the long term.
The March 1999 Supervisory Board meeting focused on the
1998 financial statements for the DaimlerChrysler AG legal
entity and group and preparations for the Annual General
Meeting. At this meeting, the Board of Management also pro-
vided the Supervisory Board with detailed information on
strategic considerations for the automotive businesses.
Karl Feuerstein retired as Deputy Chairman and member of
the Supervisory Board, effective April 30, 1999. As his
successor and at the request of the Corporate Works Coun-
cil, the Stuttgart Municipal Court named Gerd Rheude a
member of the Supervisory Board of DaimlerChrysler AG,
effective May 6, 1999. Feuerstein died on November 16,
1999, after a long period of serious illness. The Supervisory
Board mourns the loss of Karl Feuerstein, an exceptional
individual whose many years of service to DaimlerChrysler
have left a lasting mark on the company.
After the Annual General Meeting on May 18, 1999, the
Supervisory Board was reconstituted. Hilmar Kopper was
elected Chairman of the Board and Erich Klemm was
elected Deputy Chairman. At this time, the members of
the Mediation Committee, the Presidential Committee and
the Financial Audit Committee were also elected.
The meeting in the summer of 1999 was dominated by the
strategic developments at DaimlerChrysler Aerospace AG
(Dasa), particularly in terms of the consolidation and reor-
ganization of the European aerospace industry. The meeting
focused on the promotion of international mergers as a
R E P O R T O F T H E S U P E R V I S O R Y B O A R D