Siemens 2007 Annual Report Download - page 9

Report of the Supervisory Board 9
At our meeting on January 24, 2007 – one day before the Annual Shareholders’ Meeting – the Manag-
ing Board reported on the current state of the Company and on the status of the Company’s compli-
ance and control systems. In addition, the Supervisory Board was informed for the fi rst time of the
Managing Board’s intention to sell stakes in the automotive supplier Siemens VDO Automotive through
a public listing. The Supervisory Board took note of this intention. The Supervisory Board also agreed to
the acquisition of UGS Corp. of Plano, Texas (U.S.). UGS is a world-leading supplier of product lifecycle
management (PLM) software and services. PLM is an IT business platform that supports business inno-
vation and growth through digital product design, manufacture, distribution, servicing and disposal.
At our meeting on January 25, 2007, we reviewed the points discussed at the just-concluded Annual
Shareholders’ Meeting.
At the beginning of the Supervisory Board meeting on April 25, 2007, Professor Dr. Heinrich v. Pierer
resigned as Chairman of the Supervisory Board of Siemens AG. The Supervisory Board then elected me ,
Dr. Gerhard Cromme, Chairman for the remainder of the current Supervisory Board’s term of offi ce,
which expires at the Annual Shareholders’ Meeting of Siemens AG on January 24, 2008. At the same
meeting, Siemens President and CEO Dr. Klaus Kleinfeld informed the Supervisory Board that he would
no longer be available for a renewal of his contract. Also discussed at this meeting were the state
of the Company, the status of the compliance-related investigations and the topic of D&O insurance.
In addition, the Managing Board reported in detail on the new Company program Fit42010.
At an extraordinary meeting on May 20, 2007, which convened without the Managing Board in
attendance, the Supervisory Board approved a proposal of the Chairman’s Committee to appoint
Peter Löscher a full member of the Managing Board and successor to Dr. Klaus Kleinfeld as President
and CEO of Siemens AG, effective July 1, 2007. The Supervisory Board also approved a proposal of
the Chairman’s Committee to appoint Dr. Heinrich Hiesinger, Group President of Siemens Building
Technologies (SBT), to the Managing Board of Siemens AG. Dr. Hiesinger was appointed a full member
of the Managing Board, effective June 1, 2007. The Supervisory Board also approved the Managing
Board’s decision to elect Dr. Hiesinger to the Corporate Executive Committee.
Our meeting on July 25, 2007 dealt with the status of compliance-related measures, a report on the
compliance environment, the legal situation and the Company’s business and fi nancial position. The
Supervisory Board also approved the Managing Board’s proposal to sell Siemens VDO Automotive AG
to Continental AG and the planned acquisition of Dade Behring Inc. of Deerfi eld, Illinois (U.S.). The
purchase of this U.S. healthcare diagnostics company has brought Siemens a step closer to becoming
the fi rst integrated diagnostics company in the world.
The Supervisory Board decided at its meeting on September 19, 2007 to appoint Peter Y. Solmssen
a full member of the Managing Board and approved his election to the Corporate Executive Commit-
tee. Mr. Solmssen assumed the new Managing Board position for legal and compliance matters,
which was established by the Chairman’s Committee of the Supervisory Board as of October 1, 2007.
Previously Executive Vice President and General Counsel of GE Healthcare in Chalfont St. Giles (UK),
Mr. Solmssen is a highly qualifi ed and internationally recognized expert in legal and compliance-
related matters. At the same meeting, the Managing Board reported on the integration of major
acquisitions at the Automation and Drives Group and the Medical Solutions Group. We also received
an overview of the current status of the Company’s pension system and of the anticipated further
development of its pension fund assets.