BMW 2008 Annual Report Download - page 10

11 Report of the Supervisory Board
Description of Presiding Board activities and committee work In a total of six meetings, the Presiding
Board mainly focussed on preparations for the meetings of the full Supervisory Board (Plenum). The Pre-
siding Board selected additional topics for report and made further suggestions for the coverage of the
Board of Management’s reports to the Plenum. During the financial year , the Presiding Board closely
followed the implementation of the Board of Management’s business strategy approved in , including
the one-year and multi-period business plans. Particular attention was given to the impact of the financial
crisis on these plans. The Board of Management also reported to the Presiding Board on its intention to
take out directors’ and officers’ liability insurance on behalf of management. The Presiding Board also con-
sidered concepts for the compensation of Supervisory Board work in order to formulate a proposal for an
amendment to   of the Articles of Incorporation at the  Annual General Meeting.
The Audit Committee convened three times during the period under report. One further Audit Committee
meeting took place in the form of a telephone conference. One meeting was devoted to preparing for the
Supervisory Board meeting in spring  at which the financial statements were examined. As part of the
process of electing and engaging the external auditor for the financial year , the Audit Committee also
obtained a Declaration of Independence from the external auditors and a fee proposal from the firm of
auditors subsequently elected as Company and Group auditor. After the Annual General Meeting and in
line with a resolution taken by the shareholders, the Audit Committee accordingly appointed KPMG as
auditor for the financial year . The terms of engagement issued by the Audit Committee set out areas
of audit emphasis which also took account of suggestions made by the full Supervisory Board.
In two further meetings and one telephone conference, the Audit Committee considered the Board of
Management’s detailed reports on the latest risk situation, the risk management system, the risk pro-
vision measures proposed by the Board of Management (especially with respect to the Financial Services
segment) and the internal control system in place throughout the Group. The Audit Committee also re-
ceived reports from the Head of Group Internal Audit on the main areas of emphasis for Group Internal
Audit and from the Chairman of the Compliance Committee regarding progress in implementing the
new Compliance Organisation. In order to support its activities in monitoring the financial reporting
process, the Audit Committee engaged the external auditor to review the Group’s Six-Month Interim
Report.
The Personnel Committee held seven meetings during the financial year  and conducted one further
meeting by telephone. One of the main points dealt with at these meetings was the pre-selection by
the Supervisory Board of two candidates for future membership of the Board of Management as well as
preparatory work on decisions for extending the mandates of current members. In accord with the Board
of Management, the Personnel Committee also deliberated on changes to the organisation of the Board
of Management. The Personnel Committee reviewed the parameters, level of compensation and pen-
sion benefits of current Board of Management members. It also considered the appropriateness of
members’ compensation arrangements in the light of their duties, individual performance and the current
financial condition of the BMW Group. Comparative data resulting from a remuneration study for the
automotive sector and other DAX companies were used in the process. In specific cases, the Personnel
Committee also reached decisions with respect to pension benefits for current and former members of
the Board of Management.
The Nomination Committee, set up in  to find suitable candidates for election to the Supervisory
Board and for inclusion in the Supervisory Board’s proposals for election at the Annual General Meeting,
convened in January  to propose candidates for the forthcoming elections at the Annual General