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 (“shall” provisions) of the German Corporate Governance Code, with one exception. We do not list the individual shareholdings of members of the Henkel family on the Supervisory Board or on the Shareholders’ Committee. The full wording of the declaration of compliance can be found on the Internet.

The remuneration report in Henkel’s 2007 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.

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.

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 is endangered by an operational incident, or the environment is harmed, this entails more than high, unexpected costs. The company’s reputation suffers as well.

In the case of Henkel, which generates 70 percent of its sales with consumer brands, there is another crucial factor involved. Shoppers 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.