The Supervisory Board addressed the implementation of the current version of the German Corporate Governance Code at the Volkswagen Group at its meeting on November 18, 2011. The Government Commission on the German Corporate Governance Code announced on May 4, 2011 that it would not make any changes to the Code in that year. On November 18, 2011, the Board of Management and the Supervisory Board issued the declaration required by section 161 of the Aktiengesetz (AktG – German Stock Corporation Act) on the recommendations of the Code; as in the previous year, we fully comply with all recommendations with the exception of article 4.2.3(4) (cap on severance payments). The cap on severance payments was and will be taken into account when entering into new contracts with members of the Board of Management, but not when renewing contracts with members being reappointed for their third or subsequent terms of office in those cases in which no cap was originally provided for in the original contract. To this extent, a grandfathering provision has been applied, and applies.
The joint declaration of conformity by the Board of Management and the Supervisory Board is permanently available on the Volkswagen AG website at www.volkswagenag.com/ir. Further information on the implementation of the recommendations and suggestions contained in the German Corporate Governance Code can be found in the corporate governance report and in the notes to the consolidated financial statements.