Supervisory board evaluation of listed companies
Requirements for listed companies
The new version of the German Corporate Governance Code (DCGK) brings various changes in content. The supervisory board is not only the focus of attention with regard to the number of supervisory board mandates and requirements for the independence of members, but also with regard to the evaluation or self-assessment of the supervisory board's work.
Clause D.12 states that
the supervisory board shall regularly assess how effectively the supervisory board as a whole and its committees perform their duties, and
in the corporate governance statement, the supervisory board shall report whether and how an evaluation has been carried out.
The evaluation can and should do more than a purely regulatory-driven compulsory exercise. It should
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 the supervisory board's work.