ECBE Governance Perspectives
A look at the practice in the evaluation of Supervisory Boards of the companies in the DAX index family
Practice of evaluations or self-evaluations of Supervisory Boards
ECBE Governance Perspectives
In our current ECBE #GovernancePerspectives, we take a look at the practice of evaluations or self-evaluations of Supervisory Boards.
In 2020, 58 percent of the Supervisory Boards of companies listed in the DAX, MDAX and SDAX have carried out an evaluation - 24 percent of them with external support. In addition, 79 percent of the companies report when an evaluation was last conducted and 19 percent of the companies report when the next evaluation is planned.
Evaluation has established itself as an essential instrument of good Corporate Governance. Many companies have recognised that it can and should do much more than simply check for compliance with regulatory requirements.
It helps to
create a uniform basis of information for a well-founded discussion in the Supervisory Board.
identify and describe strengths, deficits and obstacles in the Board's work.
formulate needs for improvement and action.
establish a systematic process for the continuous development of the Supervisory Board's work.
We are looking forward to our analysis of the 2021 Annual Reports after the current AGM season. Will the information in the Corporate Governance Statements on whether and how an evaluation or self-assessment has been carried out continue to increase?
