Corporate Governance at Henkel

The controlling company of Henkel is Henkel AG & Co. KGaA, headquartered in Düsseldorf. Responsible corporate management and controlling, aimed at a long-term increase in shareholder value, has always been a part of our identity. Taking into account the special aspects specific to its legal form and articles of association, Henkel AG & Co. KGaA complies with the main recommendations of the German Corporate Governance Code, with two exceptions. We do not list the individual shareholdings of members of the Henkel family on the Supervisory Board or on the Shareholders’ Committee. The remuneration of the Management Board also complies with its guidelines. The full wording of the declaration of compliance can be found on the Internet, by following the link on the right hand side.

The remuneration report in Henkel’s 2010 Annual Report explains the main components of the compensation system for the Management Board, Supervisory Board, and the Shareholders’ Committee of Henkel AG & Co. KGaA and indicates the level of the remunerations paid.

Long-term shareholder value

Graphic Long-term shareholder value

With efficient processes, innovative products and comprehensive risk management, Henkel’s sustainability strategy contributes to a long-term increase in the value of the company. We see the increasing interest of international capital markets in ethical investment funds and general CSR topics as another clear signal for the economic significance of sustainability.

Risk management – Safeguarding values

Group-wide risk management makes an indispensable contribution to value-oriented management at Henkel. It enables business opportunities to be optimally utilized and possible risks to be countered at an early stage. Independent safety, health and environment audits are an important component of this function.

For example, if the neighborhood or the environment is endangered by an operational incident, this entails much more than high, unexpected costs. Our reputation will suffer as well.

For a company like Henkel, which generates around 50 percent of its sales with consumer brands, this is a crucial factor. Consumers and customers can decide on a daily basis whether or not to buy Henkel products, thus influencing Henkel’s economic success. This is yet another reason why integrated management and the global Code of Conduct are of major importance for the future viability of the Company.