Reebok 2010 Annual Report Download - page 26

22 To Our Shareholders Supervisory Board Report
The main focus of our August 3, 2010 meeting were the results of the first half year, which were well above market expectations,
as well as the anticipated development of business for the remainder of 2010. Moreover, the Executive Board extensively reported
on the IT strategy of the Group and we dealt in detail with the new provisions of the German Corporate Governance Code which
came into force in July 2010. Furthermore, we renewed Erich Stamminger’s mandate as Executive Board member and approved the
conclusion of his new service contract prepared by the General Committee.
At our Supervisory Board meeting held on November 3, 2010, discussions centred on the report for the first nine months of
the year and the outlook for the remainder of the 2010 financial year. Following the Executive Board’s detailed presentation of the
strategic business plan “Route 2015” for the years 2011 to 2015, we focused on the medium-term business development of the
Group. Furthermore, the Executive Board informed us about the growth potential of the adidas Outdoor category. Another major
point of focus was the report of the Audit Committee Chairman on the key contents of the Audit Committee meetings held on
September 29, 2010 and November 2, 2010, which dealt with the Audit Committee’s examination of the effectiveness of the updated
risk management system, the internal control system and the compliance system. The Audit Committee, to which we have delegated
monitoring of the effectiveness of these systems, explained that the systems comply with statutory regulations.
At our meeting on February 9, 2011, at which the Executive Board was present only part of the time, we discussed and
approved the budget and investment plan for 2011 based on the detailed presentations provided by the Executive Board. Following
a comprehensive report by the Executive Board, we furthermore approved the sale of Herzo Base real estate. We subsequently
focused on the objectives for the future composition of the Supervisory Board and, in addition, we also resolved upon the content of
the 2011 Declaration of Compliance. Furthermore, we resolved upon the General Committee’s proposal concerning the amount
of the 2010 Performance Bonus to be granted to each member of the Executive Board.
Report from the committees
In order to perform our tasks in an efficient manner, we have five Supervisory Board standing committees and also the project-
related Committee for Real Estate Projects, which was established ad hoc in 2009 see Supervisory Board, p. 18. These committees
not only have the task of preparing topics and resolutions of the Supervisory Board, they partly also make decisions on behalf of
the Supervisory Board.
The committees’ work in the year under review is summarised as follows:
– The Steering Committee, which is authorised to pass resolutions on behalf of the entire Supervisory Board in particularly urgent
cases, did not meet in the year under review. All Supervisory Board resolutions were able to be passed by the Supervisory Board as
a whole.
– The General Committee, which is responsible for preparing personnel decisions of the Supervisory Board and for submitting
proposals with regard to the Executive Board compensation and also the contents, structure and conclusion of the Executive
Board members’ service contracts, met twice in 2010. A further meeting, dealing with topics of the year under review, took
place in February 2011. At the meetings of the General Committee, the resolution proposals on the criteria and targets for
the 2010 Performance Bonus Plan to be submitted to the Supervisory Board were prepared following detailed discussion. In
addition, the committee comprehensively dealt with the service contract to be concluded in connection with the reappointment of
Erich Stamminger as a member of the Executive Board. Furthermore, the members of the committee discussed the Performance
Bonus payments to be made to the members of the Executive Board for the 2010 financial year.