At the five meetings of the Supervisory Board last year, we were comprehensively informed of the development of the bank’s business and strategy as well as of current events and transactions of fundamental importance. We advised the Board of Managing Directors and monitored the management of business. The Board of Managing Directors informed us regularly, without delay and comprehensively, and presented all matters that required the Supervisory Board’s decision. Between the meetings, the Board of Managing Directors kept us informed in writing on important operations. Furthermore, members of the Group Executive Committee reported on the developments in their business divisions at the meetings of the Supervisory Board.
The Board of Managing Directors regularly reported on business policies and other fundamental issues relating to management, corporate planning, strategy, the bank’s financial development and earnings situation, the bank’s risk management as well as transactions that were of significant importance to the bank. Current topics and decisions were also dealt with individually in regular discussions between the Spokesman of the Board of Managing Directors and the Chairman of the Supervisory Board. Furthermore, we have received regular reports on the trial proceedings in the Mannesmann case and on the status of the proceedings of Dr. Kirch against the bank and Dr. Breuer.
Following phase one of the bank’s realignment through the successful implementation of its four strategic initiatives (focus on current earnings, focus on core businesses, improvement of capital and balance sheet management, optimization of PCAM Group Division), extensive discussions were held, in particular, on revenues growth by establishing the bank as a globally leading brand name, improving CIB’s leading position, securing PCAM’s profitable growth and maintaining our strategy of strict cost, capital and risk discipline. All efforts are aimed at the target of increasing the bank’s operating revenues. Problem loans and provisions for credit losses were and will be reduced further.
Meetings of the Supervisory Board. At the first meeting of the year on February 6, 2003, we discussed the development of business in 2002, the key figures of the Annual Financial Statements for 2002 and the plan for the years 2003 to 2005. In addition, we discussed the human resources report, and the sale of a portion of the bank’s private equity portfolio was discussed and approved.
At the following meeting on March 21, 2003, we approved the Annual Financial Statements for 2002, which were thus established. Furthermore, discussions were held on the corporate governance report and the compliance report, the resolution proposals for the agenda of the General Meeting 2003 were approved, and we discussed the Group’s risk management.
At the constitutive meeting of the Supervisory Board directly following the General Meeting on June 10, 2003, Dr. Breuer was reelected Chairman and Ms. Förster Deputy Chairperson of the Supervisory Board. Dr. Breuer thus also became Chairman of the Chairman’s Committee, the Credit and Market Risk Committee and the Mediation Committee as well as member of the Audit Committee. As a result of this election, Ms. Förster became member of the Chairman’s Committee, Audit Committee and Mediation Committee. Furthermore, Dr. Cartellieri and Mr. Kaufmann were elected members of the Chairman’s Committee, Dr. Cartellieri and Dr. Baumann members of the Credit and Market Risk Committee, and Sir Peter Job and Mr. Hartmann substitute members of the Credit and Market Risk Committee. Also at this meeting, Dr. Baumann was elected Chairman and Dr. Cartellieri, Ms. Horn and Mr. Hunk were elected members of the Audit Committee.
On July 30, 2003, we arranged to receive information on the development of business in the first half of 2003. The Board of Managing Directors also informed us about the strategic realignment of the bank and the pending sale of a portfolio of approximately 50 Deutsche Bank properties in Germany and Europe, which was approved by the Supervisory Board in September through written circulation procedure. The member of the Group Executive Committee responsible for the Asset Management Business Division, Tom Hughes, reported on the current developments in his business division.
At the Supervisory Board’s last meeting of the year on October 29, 2003, the development of business in the first nine months was discussed. Furthermore, we extended the appointment of Mr. Lamberti as member of the Board of Managing Directors for another five years until September 30, 2009. The member of the Group Executive Committee responsible for the Private & Business Clients Corporate Division, Rainer Neske, reported on the current developments in his corporate division. In addition, the bank’s human resources report on staff development and succession planning was discussed and the resolution was taken to increase the bank’s share capital as required in connection with the issue of staff shares and option rights. Reports were also given on the pending legal disputes in connection with the General Meeting. Afterwards, a meeting took place without the Board of Managing Directors.
All members of the Supervisory Board participated in at least half of the Supervisory Board meetings during their period of office in the year 2003.
