Board of directors

The Board of Directors determines the Companyʼs guiding principles and strategic direction. It is the Companyʼs ultimate governing body and is therefore responsible for overseeing the Executive Management. Since the last AGM there were no personnel changes in the Board of Directors.

The following list provides an overview of the members of the Board of Directors as of 31 March 2018.

 

 

 

 

 

Member since

Elected until

Committees

Dr. Iosif Bakaleynik, Chairman/CEO

2014

2018

A, C

1951, Russian national

 

 

 

Trustee of the International Tax and Investment Center (ITIC)

 

 

 

Vladislav Osipov, Member

2012

2018

B

1971, Russian national

 

 

 

Managing Director of Centiveo AG, Zurich

 

 

 

Representative of Lamesa Holding SA, Panama

 

 

 

Dr. Markus Wesnitzer, Member

2006

2018

A, B, C

1963, German national

 

 

 

Director of ICN Immobilien Consult Nurnberg, responsible for real estate portfolios of the Schickedanz Group

 

 

 

Dr. Wolfgang Zürcher, Swiss national

2014

2018

A, B

1965, Lawyer/partner at Wenger & Vieli

 

 

 

Director at Alegra Capital AG, UCC Holding AG, Milestone Capital AG and various mandates in Family Offices

 

 

 

 

 

 

 

A = Member Nomination, Compensation and Corporate Governance Committee (NCC)  

B = Member Audit Committee (AC)  

C = Member Investment & Strategic Committee (IC)  

As of 31 March 2018, the members of the Board of Directors were independent with the exception of Dr. Iosif Bakaleynik and Vladislav Osipov.

1./2. Members of the Board of Directors/Other activities and interests

From left: Dr. Ioisif Bakaleynik, Chairman / Vladislav Osipov, Member / Dr. Markus Wesnitzer, Member / Dr. Wolfgang Zürcher, Member

Dr. Iosif Bakaleynik

Dr. Iosif Bakaleynik joined the Board of Directors in 2014 and is currently Chairman of the Board of Directors, member of the Nomination, Compensation and Corporate Governance Committee, the Investment and Strategic Committee as well as CEO of the company. Dr. Bakaleynik has broad experience in leadership roles at a range of international companies. From 2008 until 2014 he has been advisor to the Chairman of the Board of Renova Management AG, Mr. Victor Vekselberg. He was also Chairman of the Supervisory Board of Renova US Holdings Ltd., a subsidiary of the Renova Group. Furthermore, he is a member of the Board of Trustees of the International Tax and Investment Center (ITIC), served as a Director of Integra Group, a LSE listed company (2007 – 2014), and as Director of the NASDAQ listed CIFC Corp. (2014–2015). Dr. Bakaleynik holds an MBA from Harvard Business School and a Masterʼs Degree as well as a doctorate in economics from the State University of Moscow.

Vladislav Osipov

Dipl. Ing. Vladislav Osipov joined the Board of Directors in 2012. He is the managing director of Centiveo AG, a family office management company. Besides several management roles in Swiss companies (among others Coalco AG), his past work includes serving as the Secretary to the CEO/Chairman of Renova Management AG, Zurich. Between 1994 and 2005 Mr. Osipov held various senior positions in Germany and Russia within the ABB Group.

Dr. Markus Wesnitzer

Dr. Markus Wesnitzer joined the Board of Directors in 2006. He was responsible for the real estate division of Schickedanz-Holding in Fürth, Germany since 1996. In 2000 he joined the Management Board of ICN Immobilien Consult Nuremberg and has been in charge of acquisitions and asset and property management. ICN manages a real estate portfolio for the Schickedanz Group family with the emphasis on office space and commercial premises in major German cities.

Dr. Wolfgang Zürcher

Dr. Wolfgang Zürcher joined the Board of Directors in 2014. He works as an attorney at Wenger & Vieli. He is a member of the Board of a number of listed and unlisted companies. Dr. Zürcher is a certified notary of the canton of Zug and a registered representative at SIX Swiss Exchange. Wolfgang Zürcher holds a doctorate in law from the University of Zurich and a Master of Laws (LL.M.) from University College London.

With the exception of Dr. Iosif Bakaleynik, none of the Directors holds executive office within the Züblin Group or has a significant business relationship with it. For further information see Note 5.13 “Related parties”, in the notes to the consolidated financial statements of the Züblin Group.

None of the non-executive board directors was a member of management of the listed Company or a subsidiary in the last three reporting periods.

3. Ordinance against excessive pay in listed companies (VegüV)

Under the Companyʼs articles of association (Art. 21), the members of the Board of Directors may not hold more than 15 other directorships, of which no more than 5 may be in listed companies.

4. Elections and terms of office

4.1 Board of Directors

The members of the Board of Directors are elected individually for a term of office of one year, with the Chairman of the Board being elected at the same time. As a rule the members of the Board of Directors step down when they reach the age of 70. The Board of Directors of Züblin Immobilien Holding AG is is currently made up of three non-executive directors. There are currently no interlocking memberships on other boards of directors.

4.2 Audit Committee (AC)

The members of the AC are elected individually for a term of office of one year.

4.3 Nomination, Compensation and Corporate Governance Committee (NCC)

The members of the NCC are elected individually for a term of office of one year.

5. Internal organizational structure

5.1 Allocation of responsibilities within the Board of Directors

The roles of Vice-President and Delegate of the Board of Directors do not exist. A division of responsibilities within the Board of Directors is not envisaged.

5.2 Board committees, their responsibilities and powers

The task of the committees is to prepare the groundwork for decisions by the full Board. Decisions are taken by majority vote.

5.2.1 Audit Committee (AC)

The Chairman of the Audit Committee is Dr. Markus Wesnitzer. The other members are Vladislav Osipov and Dr. Wolfgang Zürcher. The Audit Committee supervises Group Management with regard to implementation of corporate strategy, compliance with statutory and other regulations, internal regulations and directives, and risk management. It also supervises the auditors, and reviews the results of the annual audit as well as the accounting principles and financial control mechanisms.

5.2.2 Nomination, Compensation and Corporate Governance Committee (NCC)

The Chairman of the NCC is Dr. Wolfgang Zürcher. The other members are Dr. Iosif Bakaleynik and Dr. Markus Wesnitzer. The NCC lays down the principles for the compensation of the Board of Directors and the Executive Management, including the definition of individual targets for the Executive Management which form the basis for the operating performance bonus. NCC is also responsible for the appointment and dismissal of the members of the Executive Management and Board Members of subsidiary companies.

5.2.3 Investment and Strategy Committee (IC)

Dr. Iosif Bakaleynik is Chairman of the IC, Dr. Markus Wesnitzer acts as member. The Committee monitors compliance with the processes for purchases and sales of properties and ensures the strategic investment guidelines are implemented.

5.3 Work methods of the Board of Directors and its committees

The Board of Directors convenes as often as business requires. In financial year 2017/18, the Board of Directors met four times for an ordinary as well as once for an extraordinary (e.o.) meeting. On average, the meetings last five hours. The Board of Directors is quorate when a majority of its members are present. Decisions are taken by majority vote. In the event of a tied vote, the Chairman has the casting vote. E.o. meetings of the Board of Directors or conference calls are convened and decisions taken by circular resolution if required. Minutes are taken of Board meetings and conference calls; decisions taken by circular resolution are recorded in the minutes of the following meeting. Executive Management usually participates in the meetings of the Board of Directors.

Meetings of the AC take place primarily in preparation for the annual and semi-annual reports or if particular transactions so require. In financial year 2017/2018, the AC met two times.

Meetings of the NCC are held primarily with regard to setting the compensation for the Board of Directors and Executive Management. The NCC met twice in financial year 2017/18.

6. Definition of areas of responsibility

The organization of the Board of Directors and Executive Management is governed by the organizational rules and regulations approved by the Board of Directors in July 2015 and is reproduced in summary form below.

The non-transferable duties of the Board of Directors are listed in detail in the articles of association under article 16 (available on the Companyʼs website www.zueblin.ch or directly from the company). In its role as the companyʼs ultimate governing body, the Board of Directors is responsible for:

  1. maintaining overall oversight of the company and laying down its organizational structure
  2. structuring accounting, financial planning and financial control
  3. appointing and dismissing members of the companyʼs management and persons empowered to represent the company and stipulating their signature powers
  4. supervising and overseeing the activities of Executive Management, appointing and dismissing members of Executive Management including with regard to their compliance with the law, articles of association, regulations and directives
  5. preparation of the annual report and the Annual General Meeting and subsequent implementation of its resolutions

The processes applying to the purchase of real estate are dealt with separately. The Board of Directors has drawn up guidelines for these purchases, which govern investment targets, performance and quality specifications. The Board of Directors takes all decisions on the purchase and sale of real estate on the basis of proposals from Executive Management. The approval of the Board of Directors is always required in cases when an acquisition is connected with a capital increase or the issuance of a bond.

All other duties, in particular the management of the ongoing operating business, are the responsibility of Executive Management. Executive Management submits a budget with a three-year business plan (including a budget for property renovations) to the Board of Directors every year and is responsible for implementing it once it has been agreed. Regulations governing approval limits also stipulate which financial decisions can be taken by Executive Management and which have to be submitted to the Board of Directors.

7. Information and control instruments vis-à-vis Executive Management

Executive Management submits regular structured reports to the Board of Directors. The flow of information between the Board of Diretors and Executive Management is also assured by virtue of the fact that Executive Management usually attends the meetings of the Board of Directors.

Following information and control instruments are available to the Board of Directors:

  1. Group consolidation including comparison with previous year and budget as well as an analysis of any deviations (quarterly management information system)
  2. Reports on financing activities including cash management
  3. Detailed reports from Executive Management on the development of the portfolio
  4. Risk management system (quarterly risk sensitivity analysis broken down into property market and financing risks. For further information on risk management, please refer to the notes in the consolidated financial statements, section 3.
  5. ICS – Internal control system (risk-optimized processes and controls)

Due to its size the company does not have an internal audit function. If any reviews or investigations are required Züblin therefore commissions third parties or external auditors to perform these. However, no such instances occurred during the reporting year.