Revision of the German Corporate Governance Code (in German)

Deutsches Aktieninstitut has commented on the revision of the German Corporate Governance Code proposed by Regierungskommission Deutscher Corporate Governance Kodex. The determination of independence of Supervisory Board members by negative indicators is welcome. However, going further into detail, Deutsches Aktieninstitut is critical as to criteria put forward as indication for independence - such as the fixed term limit to a maximum of 12 years for recurring re-appointment as member of the Supervisory Board. The introduction of the proposed "apply and explain" approach as well as the concrete remuneration model should -in the view of the Deutsches Aktieninstitut- be rejected - at least if required as “mandatory” recommendation of the code. We also deem problematic that eg term limits for re-appointment as well as the restriction of accumulation of mandates for Supervisory and Management Board members interferes with well established market practice. In addition, they are not effective.