In implementing these measures, we followed the recommendations of our external remuneration committee, which was set up specifically for supervising purposes. In addition, the committee, chaired by Jürgen Hambrecht, the former CEO of BASF, made a number of suggestions that have largely been implemented. For example, we have improved the transparency of remuneration and completely eliminated multi-year bonus guarantees.
We incorporated our cultural principles and involved risk management functions more closely in the remuneration process. We also ensured a better balance between employee compensation, distribution of dividends and retention of earnings, i.e. plowing profit back into the company.
Finally, one important measure is strengthening of our internal controls, which means that the latitude for unacceptable behaviour has been significantly reduced. Our current control system differs fundamentally from the system in force prior to the crisis. The objective is to transform our risk culture and ensure that concern for the Bank's reputation is always at the heart of our decision-making.
The Panel´s findings, published in 2013, noted that "governance processes around the bank´s compensation structure, decision-making and related disclosures are of a high standard."