Buhlmann's Corner 2

Refurbishment of German Corporate Governance Code – urgent?

The Government Commission on the German Corporate Governance Code on 13 May 2013

adopted amendments to the German Corporate Governance Code. The new version of the Code came into force on 10 June 2013 on publication in the Federal Gazette.

The changes relate (mainly) to executive compensation and the first successful deletions, of passages that have become superfluous – and also unnecessary, because the legislature overtook the Commission on the right.

Instead of a small adaptation, the Code urgently needs a policy, and a clean slate.

The Code Commission needs its own budget – not just “random” sponsors.

The Code Commission needs a credible and respected advocate for the cause – after a charismatic start under Cromme, under Klaus-Peter Müller recognition levelled off proportionately with the market price of the Commerzbank he led previously and concurrently.

The Code Commission needs a transparent and representative composition instead of a random and unstructured royal appointment in a deal between the Ministry and the Chancellery…

... and by that I mean, among other things, more representative than just men!