BMW 2006 Annual Report Download - page 8

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to meet the disclosure requirements for the first time for the financial year 2006.
A detailed report on the amount and structure of the compensation of the
Board of Management and the Supervisory Board can be found in the Corporate
Governance Report.
The Supervisory Board also questioned the effectiveness of its own work and
perceives improvements in cooperation to be part of an on-going process.
The composition of the Presiding Board and the three committees of the Super-
visory Board (see page 116) again remained unchanged during the financial year
2006. The Chairman reported regularly at Supervisory Board meetings on the
status of committee work.
The focus of each of the four meetings held by the Presiding Board was to
pre-
pare the plenum meetings, in particular the selection of special topics of report
and to hold preparatory discussions on the more complex topics with members
of the Board of Management. The Presiding Board also requested the new Chair-
man of the Board of Management to report on the main focuses of the group’s
future orientation. Information was also acquired about new legislation in Ger-
many, such as the Takeover Guidelines Implementation Act, affecting the duties
of the Supervisory Board.
The Audit Committee convened three times during the period under report. One
of these meetings served primarily to prepare for the Supervisory Board meeting
in spring 2006, the main purpose of which was to consider the drafts of the
Company and Group financial statements. Apart from scrutinising the drafts, the
Audit Committee also obtained a Declaration of Independence from the external
auditors and determined the areas of audit emphasis to be incorporated into the
audit engagement letter. The Audit Committee also enquired into the impact of
settling the exchangeable bond on shares in Rolls-Royce plc, London. A further
Audit Committee meeting was dedicated to the consideration of risk
manage-
ment issues,including the evaluation of currencyrisks and anti-fraud management.
The Audit Committee also gathered information about forthcoming changes
in law, such as the new Transparency Guidelines Implementation Act that came
into force on 20 January 2007.
The main activity of the six meetings of the Personnel Committee in 2006 in-
volved the preparation of decisions relating to the composition of the Board
of Management, in particular determining the short-list of candidates for the
positions of Chairman of the Board of Management and other board positions.
The Personnel Committee also reviewed the appropriateness of the compen-
sation of the members of the Board of Management, in comparison with the
automotive industry and other DAX-listed companies, drafted resolutions re-