Campus

No change in Supervisory Boards’ pay scale

According to Towers Watson, the debate on the “proper” remuneration of Supervisory Boards stirred up in the wake of certain amendments made to the Code of Corporate Governance in Germany, has been extremely fruitful. Whereas company watchdogs used to be paid according to voluntary work pay-scales, or proportionately to their company’s dividend, a certain idea of establishing remuneration as a means of guaranteeing independence and introducing professionalism among the members of the Board has taken root. The Code states that from 2012 the variable components of remuneration be pegged to the long-term success of the company. This has brought about changes in the model of almost a third of DAX-listed companies. The consultancy company forecasts that other companies will adapt their retribution policies in the coming years. Previously, the Code had suggested that the remuneration of Supervisory Board members be generally pegged to success. There are now 13 DAX-listed companies that pay their Supervisory Board a fixed amount while 17 take the short- or long-term success of the company as a variable factor (e.g. calculated on how the result affects each single share). The average earning of the Chair of a Board of Directors in 2013 is 338.500 Euro. Compared to this, the fee of the Chair of the watchdog committee is practically identical to that of the year before (+1%) reports Towers Watson.

Research: fuel to power the engine driving the German economy towards success, construction of machine tools

Jointly with Deutsche Industriebank – IKB, the Association of German Machine-tool manufacturers and plant (Verband Deutscher Maschinen- und Anlagenbau – VDMA) has presented a study on the future of the sector of German industry that produces capital goods and the area of machine tool production. The authors drew from facts to prepare and present a number of theories regarding the present situation, and according to them emerging countries are destined to play a more prominent role worldwide. There is a trend towards increased industrialization in Europe and in the rest of the world deriving from growing demand for industrial products in emerging countries. Germany has the advantage of strong industry to start with. Integration of so-called megatrends – transport and mobility, the supply of energy, climate and resource protection is of paramount importance – as are information and networks that provide good employment prospects for the future.

Furthermore, fresh competition is always emerging, especially in China. The study, however points out that the German success stories are difficult to emulate. The factors that contribute to the vigour of the German economy include a marked preference for foreign markets, and being present on the market as it grows, its drive in the pursuit of innovation and its capacity to conceive and implement new ideas that embrace more than one business area. If, then, one adds the flexibility typical of small- to medium-sized industry, competitiveness becomes greatly enhanced in terms of price.

Experts, however, are advising companies to review how they tackle the issues inherent in internationalisation. Small- and medium-size producers of machine tools are presently labouring against a gap in technology by which the purchase of raw materials to be used in manufacture is no longer aligned with the characteristics the customers demand for the goods they purchase, a disharmony seen also between R&D and production. In short, raw materials should be purchased on the world market whereas production, sales and after-sales assistance should focus on the needs of specific areas.

Furthermore, German companies are able to stand out from the competition by the complex system solutions they adopt and the cooperation they offer networking both inside and outwith their own specific business area. Germany’s presence in the international arena and its increasing offer in terms of system performance now demand a quantum leap. An alternative solution could lie in specialisation. Companies must continue to give due importance to

cost efficiency, process optimisation and the continued ability to keep production capability up to date in order to guarantee high quality together with proper prices. Lastly, politics must also play its part to maintain and promote free competition  in the engine that powers the German economy.

Surteco: Investment with an eye towards SDax

In November, Surteco SE, the surface technology specialist earned almost 80 million Euros from the issue of 4.4 million new shares, so raising the widely-held stock from 23 to 45 percent The management board reports that this improves the chances for the Prime Standard to be accepted into the Small Cap Index SDax. The subcontractor in the construction and furnishing industry has earmarked this increase in capital to fund the Süddekor group. The German antitrust watchdog has given its blessing to the transaction.

Sympatex: Bonds on environmentally-friendly fabrics

Sympax Holding GmbH., the producer of impermeable and transparent membranes for functional clothing based in Unterföhring near Munich was floated on the Frankfurt stock exchange at the end of November with a bond volume of 13 million Euros. The title has a duration of five years with a coupon of 8% and is expected to be listed as an Entry Standard for company bonds. 60% of the bond’s yield is earmarked to fund company growth. According to the online platform fixed.income.org., by the end of this year Sympatex Holding  is hoping to have purchased a profitable company in France in the same line of business as itself with a 9 million Euro turnover.

Sympatex points out that the difference between its products and those of the competition lies firstly in the superior performance of theirs and secondly by their environmental compatibility. All Sympatex’s fabrics are recyclable. This is why the company is directing attention to its brand name as an ecological alternative in the market of functional clothing. Sympatex presently employs a staff of 300 staff in 19 countries.