Corporate Governance News / PR Offensive: How the Government Commission is Taking Over the Silent Majority

Kritik am Kodex Entwurf

The government commission has reacted to the concentrated criticism of the draft code with a PR and social media offensive: Recently, the number of people asking to speak in the media and on Twitter has increased significantly. The Commission, for example, referred to “Great interest in the #Code2019” in a tweet and stressed that “there is a great deal of agreement in principle on a fundamental revision”.

This was followed by tender indications that the agreement was not too far away. “In detail, however, many see some reform issues differently,” was quoted from a recent WirtschaftsWoche interview by Commission Chairman Rolf Nonnenmacher, who even hinted at self-criticism: “In individual formulations we may have become too concrete

However, Nonnenmacher immediately went on to counterattack: He often missed “the understanding that there is an urgent need for action with regard to the remuneration of the Management Board”. And he suggested that there was a silent majority behind the Commission: “You don’t get in touch if you have no objections”

Silence is not consent!

I don’t know if Nonnenmacher is surrounded by claqueurs or only speaks to selected boards of directors and supervisory boards. The silence of numerous companies as an approval to evaluate, misses in any case miles far from the reality. I am convinced that many of those responsible have turned away disillusioned from the Commission and its Code.

And as far as the issue of Executive Board remuneration is concerned, everything has been said about it for a long time – but not yet in the Code. “Urgent need for action,” I can’t even begin to see.

Nonnenmacher’s statements thus confirm my fear: A fundamental rethink is not discernible; the government commission will try to get through with a few changes in detail. One more reason for us at VARD to resolutely promote the #KodexWende initiative.

More information will be available next week – here and probably in other media as well.

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

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