Porsche 2003 Annual Report Download - page 23

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19
____ “The Consolidated Financial Statements and interim
reports shall be prepared under observance of internationally
recognized accounting principles.”
The Porsche AG Executive Board has decided to take advanta-
ge of the time frame contained in the legislation and not to
convert to international accounting standards until 2005. The
main reason for this is that these regulations are still in a state
of flux. Converting later on what will by then be a secure basis,
will considerably reduce the effort and expense involved.
____ “The Consolidated Financial Statements shall be publicly
accessible within 90 days from the end of the financial year,
and the interim reports within 45 days from the end of the
reporting period.”
Porsche has established a publication cycle corresponding
to its unusual financial year, which guarantees the company
optimum publicity. We do not consider it appropriate to
deviate from this practice.
____ “Notes on the relationships with shareholders considered
to be related persons pursuant to the applicable accounting
regulations shall be provided in the Consolidated Financial
Statements.”
This recommendation is not being followed because of the
special character of Porsche AG’s shareholder structure.
There have been and still are many and varied relationships
with the common stockholders of the Porsche and Piëch
families, for which this schematic form of publication is not
appropriate. This form of collaboration takes place according
to common practice in the business sector concerned.
____ “Shareholders and third parties are mainly supplied with
information by the Consolidated Financial Statements. They
shall be informed during the financial year by means of interim
reports.”
The company issues interim reports. However, Porsche
rejects quarterly reporting for reasons of principle that have
already been explained in detail.
____ “Payments to members of the Executive Board shall be
reported in the notes to the Consolidated Financial Statements,
subdivided according to fixed, performance-related and long-
term incentive components. The figures shall be individualized.”
We show the salaries of members of the Executive Board
subdivided according to fixed and performance-related com-
ponents. Porsche AG does not operate a share option scheme.
We will not comply with the non-mandatory regulation in the
code requiring payments to board members to be shown
individually. In our opinion, the associated disadvantages –
particularly the inevitable leveling up of board members’
salaries and the invasion of the individuals’ right to privacy –
outweigh the advantages of such a practice to investors. The
latter are, in any case, unaware of the criteria and scales on
which differences between board members’ salaries are based.
____ “Payments to the members of the Supervisory Board
shall also be reported in the notes to the Consolidated Finan-
cial Statements, individualized and subdivided according
to components.”
We show payments to the Supervisory Board as a single sum.
We do not state the sums paid to individuals because we can
see no additional advantage for investors in this in view of
the level of payments involved and the requirements stated in
the statutes.
____ “Payments made to members of the Supervisory Board
or the benefits granted to them in respect of personal services
rendered, in particular advisory or negotiating services, are
also to be shown individually and separately in the annex to
the Consolidated Financial Statements.”
The ability to access the expertise of individual members of
the families who are shareholders in the company on specific
subjects represents a particular advantage for Porsche AG.
This cooperation takes place on terms that are customary in
this business sector and which are also complied with in the
event of comparable business arrangements being under-
taken with third parties. The recommendation is inappropriate
for the character of a family-owned business and for this
reason is not complied with.
Dr. Ing. h.c. F. Porsche Aktiengesellschaft
Supervisory Board and Executive Board