Siemens 2011 Annual Report Download - page 349

153 D. Consolidated Financial Statements 273 E. Additional information
158 D. Consolidated Statements of Changes in Equity
160 D. Notes to Consolidated Financial Statements
266 D. Supervisory Board and Managing Board
154 D. Consolidated Statements of Income
155 D.2 Consolidated Statements of Comprehensive Income
156 D. Consolidated Statements of Financial Position
157 D. Consolidated Statements of Cash Flow

pensation, attributable to members of the Supervisory Board
amounted to €. million. Compensation attributable to mem-
bers of the Supervisory Board comprises in fiscal  fixed-
compensation, short-term variable compensation and long-
term variable compensation. In fiscal , compensation, at-
tributable to members of the Supervisory Board amounted to
€. million in total, therein €. million related to long-term
variable compensation.
The Compensation report outlines the principles used for de-
termining the compensation of the Managing Board of
Siemens AG and sets out the level and structure of Managing
Board remuneration. In addition, the report describes the poli-
cies and levels of compensation paid to Supervisory Board
members. The Compensation report, which is part of the
Notes to Consolidated Financial Statements, is presented
within the Corporate Governance report, included in this An-
nual Report for fiscal year  (see
B.4 ).
In fiscal  and , no other major transactions took place
between the Company and the other members of the Manag-
ing Board and the Supervisory Board.
In addition, some of the members of the Company ’s Supervi-
sory Board and Managing Board hold positions of significant
responsibility with other entities. Siemens has relationships
with almost all of these entities in the ordinary course of busi-
ness whereby the Company buys and sells a wide variety of
products and service on arm’s length terms. Dr. Josef Acker-
mann is the Chairman of the Management Board of Deutsche
Bank AG. The Company ’s transactions with Deutsche Bank
Group were conducted on arm’s length basis and include secu-
rities underwriting, other investment banking services, and
credit, money market and foreign exchange business as well
as transaction banking services. Michael Diekmann is the
Chairman of the Board of Management of Allianz SE. Our trans-
actions with Allianz Group were conducted on arm’s length
basis and include insurance business and asset management.
 – Principal accountant fees
and services
Fees related to professional services rendered by the Compa-
ny ’s principal accountant, Ernst & Young (E&Y), for the fiscal
years  and  were as follows (continuing and discon-
tinued operations):
Year ended September ,
(in millions of €)  
Type of Fees
Audit fees 42.0 40.9
Other assurance services
(audit-related services) 14.8 5.3
Tax advisory services (Tax services) 0.7 1.0
Other services –0.1
Total 57.5 47.3
Audit fees and audit-related fees consist of fees associated
with the services pre-approved by the Audit Committee de-
scribed below. Tax fees, which require specific pre-approval
by the Audit Committee, include primarily fees for support
services provided in connection with the documentation of
transfer pricing arrangements and assistance for competent
authority procedures according to Article  of the OECD Mod-
el Tax Convention regarding transfer pricing issues.
In fiscal  and , % and %, respectively, of the total
fees related to Ernst & Young GmbH Wirtschaftsprüfungsge-
sellschaft, Germany.
AUDIT COMMITTEE PRE-APPROVAL POLICIES
In accordance with German law, Siemens’ independent audi-
tor is appointed by the Annual Shareholders’ Meeting based
on a recommendation of the Supervisory Board. The Audit
Committee of the Supervisory Board prepares the board’s rec-
ommendation on the election of the Company ’s independent
auditor. Subsequent to the auditor’s appointment, the Audit
Committee engages the auditor and in its sole authority ap-
proves the terms and scope of the audit and all audit engage-
ment fees. In addition, it monitors the auditor’s independence.