Supervisory Board

Committees

The committees set up by the Supervisory Board operate in compliance with the German Stock Corporation Act and the German Corporate Governance Code. The committees of the Supervisory Board are as follows:

Presidial Committee

This comprises the Chairman and Vice Chairman of the Supervisory Board along with a further stockholder representative and a further employee representative. The Presidial Committee serves primarily as the mediation committee pursuant to the German Codetermination Act. It has the task of submitting proposals to the Supervisory Board on the appointment of members of the Board of Management if the necessary two-thirds majority is not achieved in the first vote at a plenary meeting. Certain decision-making powers in connection with capital measures, including the power to amend the Articles of Incorporation accordingly, have also been delegated to this committee. In addition, the Supervisory Board may assign specific responsibilities to the Presidial Committee on a case-by-case basis. The Presidial Committee may also make preparations for Supervisory Board meetings.

Audit Committee

The Audit Committee comprises three stockholder representatives and three employee representatives. The Chairman of the Audit Committee in 2016, Dr. Klaus Sturany, meets the statutory requirements concerning the expertise in the field of accounting or auditing that a member of the Supervisory Board and the Audit Committee is required to possess.


The Audit Committee meets regularly four times a year. Its principal tasks are to oversee the financial reporting process, the effectiveness and ongoing development of the internal control system, the risk management system, the internal audit system, the compliance system and the audit of the financial statements. It prepares the decisions of the Supervisory Board pertaining to the financial statements, the management report, the proposal for the use of the distributable profit, the consolidated financial statements, the Group management report and the agreements with the external auditor, including, in particular, the audit contract, the definition of audit priorities and the fee agreement.


The Audit Committee submits a proposal to the Supervisory Board concerning the auditor’s appointment and takes appropriate steps to ascertain and oversee the auditor’s independence. In particular, it verifies whether the financial statements were prepared in accordance with the statutory requirements and give a true and fair view of the net assets, financial position and results of operations of the company and the Group.


At each of its meetings, the Audit Committee discusses new developments in the area of compliance where necessary. The Chairman of the Board of Management and the Chief Financial Officer regularly attended the meetings. Representatives of the auditor also attended all of the meetings, reporting in detail on the audit work and the audit reviews of the quarterly financial reports.

Human Resources Committee

On this committee, too, there is parity of representation between stockholders and employees. It consists of the Chairman of the Supervisory Board and three other Supervisory Board members. The Human Resources Committee prepares the personnel decisions of the full Supervisory Board, which resolves on appointments or revocations of appointments of members of the Board of Management.


The Human Resources Committee resolves on behalf of the Supervisory Board on the service contracts of the members of the Board of Management. However, it is the task of the full Supervisory Board to resolve on the total compensation of the individual members of the Board of Management and the respective compensation components, as well as to regularly review the compensation system on the basis of recommendations submitted by the Human Resources Committee.


The Human Resources Committee also discusses the long-term succession planning for the Board of Management.

Nominations Committee

This committee carries out preparatory work when an election of stockholder representatives to the Supervisory Board is to be held. It suggests suitable candidates for the Supervisory Board to propose to the Annual Stockholders’ Meeting for election. The Nominations Committee comprises the Chairman of the Supervisory Board and the other stockholder representative on the Presidial Committee.

Innovation Committee

The Innovation Committee is primarily concerned with the innovation strategy and innovation management, the strategy for protection of intellectual property, and Bayer’s major research and development projects. Within its area of responsibility, the committee advises and oversees the management and prepares any Supervisory Board decisions.


The committee comprises the Chairman of the Supervisory Board and five other members, with parity of representation between stockholder and employee representatives. The Chairman of the Board of Management and the member of the Board of Management responsible for innovation regularly attend the meetings of the Innovation Committee.

Standing Committees of the Supervisory Board of Bayer AG (as at June 21, 2017)

Presidial Committee/
Mediation Committee

Wenning (Chairman), Achleitner, Reinbold-Knape, Zühlke

Audit Committee

Sturany1 (Chairman), Elsner, Löllgen, Plischke, Wenning, Zühlke

Human Resources Committee

Wenning (Chairman), Achleitner, Hausfeld, van Broich

Nominations Committee

Wenning (Chairman), Achleitner

Innovation Committee

Plischke (Chairman), van Broich, Reinbold-Knape, Wenning, Wiestler, Zühlke

1

Expert member pursuant to Section 100 Paragraph 5 of the German Stock Corporation Act (AktG)