Corporate Governance aktuell – Why 2019 will be a decisive year (with a P.S. to the “Causa Hoeneß”)

Corporate Governance

With this issue of GermanBoardNews we say goodbye to our holidays for two weeks – to spend a lot of time with our family over Christmas and New Year, but also to recharge our batteries. Because we have set ourselves a lot of goals for 2019.

In particular, as already announced, we intend to launch a broad-based Board of Management and Supervisory Board initiative for a far-reaching corporate governance reform. For since the publication of the government commission’s reform proposal, for which the consultation period runs until the end of January, it has been clear that this will be anything but a big success.

And according to the declared will of the chairman of the commission, Rolf Nonnenmacher, nothing is to happen for several years afterwards – a prescribed standstill, so to speak, and that in times of rapid change. The alarming thing: If this were the case, many managers would continue to check off recommendations instead of discussing what would be best for their company (especially with a view to digital transformation).

We must use the momentum

This would prevent companies from becoming (even) better. And I am deeply convinced that our business location cannot afford a governance standstill in times of intensified competition and rapid technological developments.

One thing is clear from my point of view: if the government commission gets through with its half-hearted reform without broad resistance forming in 2019, this scenario will occur – and calm will be restored for years to come. We therefore want to make use of the momentum, especially as critical voices have recently become louder.

My comrades-in-arms at VARD and I would therefore be delighted if you would support us – more on this after the turn of the year here. Until then I wish you from the bottom of my heart relaxing and contemplative holidays with your loved ones and a good start into the new year.

Any additions, comments, objections? I look forward to your feedback:

Editorial by Peter H. Dehnen -> About the Person.

P.S. This week the next bad news in terms of corporate governance has reached us: The supervisory board of FC Bayern Munich has once again elected Uli Hoeneß chairman – despite considerable reservations, which I explained in more detail in an interview with “Welt am Sonntag” (the article can be found here, a freely accessible summary here). I then received a letter from the editor recommending that I “look for a psychiatrist because of a bout of overconfidence […]who “can prescribe a few drops to a quite obviously completely detached contemporary”. Hoeneß’s lack of critical ability is apparently also affecting Bavaria fans.