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Extract from an interview with Dr. Gerhard Cromme, Chairman of the Supervisory Board of ThyssenKrupp AG

ThyssenKrupp magazine: These days, however, many shareholders are not looking for long-term prosperity, but quick gains. So where does corporate governance come in?

Dr. Gerhard Cromme: That is only partly correct. Naturally, fund managers in particular are forced to take short-term actions to boost the value of their funds as quickly as possible, partly because this determines their individual remuneration. It's true that a company's long-term development is often pushed into the background then. But, particularly in continental European countries, the consensus is that companies do not consist only of shareholders. The shareholders' long-term interests are best served when a company also keeps its customers, suppliers, employees and other business and social partners happy.

ThyssenKrupp magazine: A core part of the code is the call for transparency across the whole company. Does this contribute to securing a company's long-term competitiveness?

Dr. Gerhard Cromme: Good and transparent corporate leadership and control strengthen a company and make it attractive for investors. Empirical studies have shown that companies with inadequate corporate governance and poor transparency are punished with share price discounts. The German Corporate Governance Code seeks to eliminate these shortcomings, in particular through more transparent corporate decision-making, in the case of possible conflicts of interest among board members or auditors, and with regard to questions of remuneration. Each manager's decisions have to measure up against the transparency requirement: If he cannot cite good reasons for a decision he should not make that decision. But if he has good reasons, he has to make this decision even if it won't boost his popularity ratings.