In advising the Board of Managing Directors and monitoring its management of business, the Board of Managing Directors informed us regularly, without delay and comprehensively, and presented to us 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. As in preceding years, individual 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 obtained regular reports on the trial proceedings in the Mannesmann case, on the status of the proceedings of Dr. Kirch against the bank and Dr. Breuer, as well as on the actions for rescission and to obtain information filed in connection with the General Meetings 2003 and 2004.
Extensive discussions were held on the bank’s growth prospects as a global services provider, on the organic further development of the business divisions, on the consolidation of support functions as part of our Business Realignment Program, comprised of various initiatives with extensive strategic and financial impacts, as well as on additional investments in our core lines of business. We intend to achieve our return on equity target in 2005 through a uniform client coverage model, the controlled rise in credit volumes, increased cross-selling, as well as an integrated global presence and regional client focus, while maintaining strict cost, capital and risk discipline. By aligning our management structure to our strategic emphases and by strengthening our management in the regions, we aim to increase the bank’s operating revenues, in order to become the leading provider of financial solutions for demanding clients, creating exceptional value for our shareholders and people.
Meetings of the Supervisory Board
At the first meeting of the year on February 4, 2004, we discussed the development of business in 2003, the key figures of the Annual Financial Statements for 2003 and the corporate planning for the years 2004 to 2006.
On March 19, 2004, we approved the Annual Financial Statements for 2003, 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 2004 were approved, and we discussed the Group’s risk management. At this meeting, two members of the Group Executive Committee, Anshu Jain and Jürgen Fitschen, reported on developments in their business divisions as well as in Asia.
At our meeting on July 29, 2004, we arranged to receive information on the development of business in the first half of 2004 and discussed the implementation of the appraisal of the efficiency of the Supervisory Board in 2003. The member of the Group Executive Committee responsible for the Private Wealth Management Business Division, Pierre de Weck, reported on the current developments in his business division. Furthermore, Terms of Reference were approved for the Credit and Market Risk Committee, which was renamed the Risk Committee.
At the Supervisory Board’s last meeting of the year on October 28, 2004, discussions focused on the development of business in the first nine months and, in particular, on the bank’s strategy and new structure. The Board of Managing Directors explained the alignment of the Group’s management structure to the new strategic emphases and, especially, the strengthened regional management. In addition, the bank’s Human Resources Report on staff development and succession planning was discussed.
All members of the Supervisory Board participated in at least half of the Supervisory Board meetings during their period of office in the year 2004.
