Corporate Governance
Corporate Governance describes for the Executive Board and Supervisory Board of Hannover Re a changing institutional framework for the management and supervision of the company in all key areas of enterprise constitution. The goal is to bring about sustained growth in the value of the company as well as to strengthen and consolidate on a lasting basis the trust placed in the enterprise by our shareholders, business partners, clients, employees and the general public.
Against this backdrop, the Executive Board and Supervisory Board consistently address changes in the relevant legal framework conditions in a timely manner and the latest legal developments are promptly codified in internal corporate standards. In 2010 the company had to adapt to numerous new laws and regulations, inter alia the Act and Regulation on the Prudential Requirements for the Remuneration Systems of Institutions and Insurance Companies, the Regulation on the Supervisory Law Requirements for Remuneration Schemes in the Insurance Sector (VersVergV) as well as statements released by the Financial Stability Board and the Basel Committee on Banking Supervision. The German Corporate Governance Code was amended and revised. A state-of-the-art Corporate Governance continues to be enshrined in Hannover Re's business practices as a matter of course.
Recommendations of the Code as amended 26 May 2010
While in the previous year Hannover Re diverged with respect to one item of the German Corporate Governance Code, it diverged with respect to one item of the Code as amended 26 May 2010. The item in question - as in the previous year - involves a recommendation that a severance cap should be included when new management contracts are drawn up or existing ones renewed. The reasons for our decision are explained in the Declaration of Conformity.