Information and Control Instruments

Risk management

The Board of Directors and the Executive Board review and assess the strategic, financial and operational risks of the Group. Risk management has been further strengthened during the year under review. Migros has possessed an integrated, multi-tiered risk management approach since the end of 2008. Coordination is the responsibility of the auditor of the FMC Migros Community. The results of his checks are first presented to the heads of the strategic business segments and then, in consolidated form, to the Executive Board and the Board of Directors. Sixty employees underwent risk management training in 2008. The review process is now in regular operation.

Internal Audit

Responsibility for the management and administration of internal auditing lies with the Chairman of the Board of Directors. Audits are performed on the basis of an auditing plan approved by the Audit Committee. Internal Audit carried out 30 documented audits during the year under review, which will be discussed with management. The findings and key points were presented to the Audit Committee and the Board of Directors. Mitreva Interne Revision AG has been responsible for conducting Migros’s internal auditing since 2004.

Gottlieb and Adele Duttweiler Foundation

The autonomous Gottlieb and Adele Duttweiler Foundation was set up in 1950 by Gottlieb and Adele Duttweiler. The role of the Foundation is to ensure that the statutes, covenants and ideas of the founder of Migros are adhered to. The ideas of Gottlieb Duttweiler therefore live on in the foundation that bears his name. His vision and commitment to sustainable development have shaped Migros. In his set of propositions, dating from 1950, he stipulated that the members of the Board of Directors and the managing directors of Migros enterprises should not be paid a share of any profits. They are to be remunerated exclusively by a fixed, reasonable salary. The observance of this stipulation is still, to this day, guaranteed, in that the remuneration structure of the senior management and the Executive Board requires the approval of the Council of the Gottlieb and Adele Duttweiler Foundation. This tried-and-trusted procedure was established by covenants with the Cooperatives and the FMC as early as 1957. As long ago as the mid-20th century, then, Gottlieb Duttweiler had recognised the danger of excessive salaries and bonuses and laid down rules for remuneration accordingly.

The Foundation Council comprises the following seven independent members:
Jules Kyburz (President), Dr Claudius Alder, Peter Birrer, Hans-Ulrich Frei, Charlotte Hug-Burnod, Markus Mosele, Michel Renevey.

Board of Control

Based on the proposal of the Board of Directors, the Assembly of Delegates elect an independent trustee and auditing company as the Board of Control. The Board of Control is appointed for a term of office of two years, and may be reappointed.

PricewaterhouseCoopers AG (PwC) has been confirmed as the FMC Board of Control and as Group Auditor until 30 June 2012. The company has been auditing the annual financial statements of the FMC and the Migros Group since 1 July 2000 (previously Schweizerische Treuhand Gesellschaft - Coopers Lybrand AG). The Head Auditor, Daniel Anliker, chartered auditor, took up his post on 1 July 2006.

Information policy

Open communication and maximum possible transparency are cornerstones of everything that the Migros Community does. Migros maintains up-to-date communications with all stakeholders. Fundamental to all communications is the preservation of the Community’s credibility. Where possible, employees are the first to be informed about important events. Open communication at all levels is a key element of managerial responsibility.