Evaluation of the Supervisory Board and Executive Board for Credit institutions
Requirements of the German Banking Act (KWG)
Pursuant to § 25d par. 11, nos. 3 and 4 KWG, the administrative or supervisory body, with the assistance of the nomination committee, shall regularly, at least once a year,
assess the structure, size, composition and performance of the administrative or supervisory body, and
the knowledge, skills and experience of the members of the administrative or supervisory body.
Furthermore, the regulatory requirements of the EBA Guidelines, the Remuneration Ordinance for Institutions or the Minimum Requirements for Risk Management should be taken into account.
The evaluation can and should achieve more than a purely regulatory-driven compulsory exercise. It helps to
create a uniform information basis for a well-founded discussion in the supervisory board.
identify and describe deficits and obstacles to effective board work.
formulate the need for improvement and action.
establish a systematic process for the continuous development of supervisory board work.