Siemens 2005 Annual Report Download - page 68

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The operations of the remaining Groups had been intensively discussed in fiscal
2004. Like all our activities, these operations are also reviewed as part of our quarterly
reporting system and in connection with special issues. The latter include project man-
agement – a topic of critical importance for the Groups involved in major infrastruc-
ture businesses. A special Company-wide initiative has been set up to drive this issue,
and we received a report on its content and progress to date.
The Supervisory Board regularly discusses Siemens’ regional strategy. In 2005,
we concentrated primarily on the Company’s activities in the high-growth markets of
North America and Asia-Pacific and in our European home market as well as on the
new opportunities created by the eastern expansion of the European Union. We also
receive special presentations on the Company’s regional focus. In November 2004 and
November 2005, we considered developments in Latin America and the Middle East.
Corporate governance
The Supervisory Board regularly deals with the implementation and further develop-
ment of the Company’s corporate governance principles. In fiscal 2005, we concerned
ourselves in particular with the revised version of the German Corporate Governance
Code of June 2, 2005.
In November 2004 and July 2005, the Supervisory Board met without the Managing
Board in attendance. In the July session, the Supervisory Board discussed its opera-
tional efficiency and the division of duties between the full Supervisory Board and its
committees. At our meeting on November 9, 2005, the Supervisory Board determined
that Siemens AG – in accordance with the Company’s Declaration of Conformity – had
complied with the recommendations of the German Corporate Governance Code in
fiscal 2005. As stated in the Declaration of Conformity approved by the Supervisory
Board in fiscal 2004, Siemens complied with all of the Code’s recommendations, with
one exception: Our directors and officers liability (D&O) insurance policy had no
deductible. However, we eliminated this exception as of October 1, 2005 and therefore
approved a declaration stating our full conformity with the Code at our November
meeting.
Further information on corporate governance at the Company and a detailed
report on the level and structure of remuneration paid to members of the Supervisory
and Managing Boards appear on pages 72–87 of this Report.