Supervisory Board activities in 2021/2022

During the past year, the Supervisory Board worked closely with the Board of Management in several important areas:

• Strategy and value creation (implementation of the firm’s long-term vision and strategy, digital & innovation; business growth; regulatory developments; new business models and services; and the firm’s brand image)

• Quality and independence (implementation of a vision and strategy for quality; policies, controls and measures to further improve quality; protecting independence and supporting a broader culture of quality within the firm)

• Culture (helping the Board of Management create a culture that encourages high performance, innovation and integrity; supporting greater openness, diversity and inclusion; encouraging employees to show accountability and leadership)

During the year, the Supervisory Board held nine meetings, each beginning with a closed preparatory session. Attendance at all meetings was 100%. The meetings addressed a number of topics – some part of the Board’s annual planning, others relating to events or developments during the year. Principal topics discussed in 2021/2022 were:

• Recent social, political and economic developments, including the current war in Ukraine, rising prices, the economic outlook and continued impact of the Covid-19 pandemic

• Public trust, particularly as this may affect our business, operations, strategy and markets

• Trust & Growth, with the Board regularly reviewing progress with the firm’s strategy, focusing on quality, sustainability and digital & innovation

• Integrated annual report, with the Board discussing the external auditor’s report prior to publication (in the presence of both the auditor and the Board of Management).

Supervisory Board committees

The Supervisory Board operates through three committees: Assurance Quality, Audit & Risk and Remuneration & Appointment. The terms of reference (new window) for these committees may be found online. Committee meetings may be attended by subject matter specialists, where necessary.

Assurance Quality Committee (AQC)

“KPMG N.V.’s stated ambition is to be a leader in assurance. Part of this is taking an active role in the public debate in the Netherlands over audit quality. During the past year, the AQC has provided regular feedback on developments in the sector and the government’s reform proposals. Being a leader is also about maintaining the highest possible quality standards. As the AQC, we were very glad to see encouraging improvements in both internal and external quality measures. This is a reflection, partly, of quality coaching and the hard work of the firm’s EQCR teams. During the past year, we also oversaw progress with the North Star project for digitizing audit, and discussed international developments with the global head of audit. We were pleased to see new contracts won as part of mandatory firm rotations, and the continued roll-out of the KPMG Clara. We realize the transition to KPMG Clara puts further pressure on work volumes in the short run – an issue we are monitoring closely, particularly with regard to its possible impact on employee well-being and audit quality. We appreciate the measures management have taken on work volume management and rewards, and are happy to see emerging evidence that KPMG Clara leads to higher audit quality in practice.”

Jolande Sap, Chair of the AQC

Audit Risk Committee (ARC)

“In the past year, KPMG sustained its profitable growth trajectory, and continued its robust investment program. Regarding the appointment of the Chief Operating Officer and the external auditor, we organized and successfully completed a comprehensive and thorough selection and nomination process, leading to appointments of Marc Broskij and PwC respectively. Cyber security was further enhanced during the year. And, finally, the journey toward reasonable assurance for the Integrated Annual Report was concluded successfully.”

Gosse Boon, Chair of the ARC

Remuneration & Appointment Committee (RAC)

“As incoming Chair of the RAC, I have been impressed with KPMG N.V.’s professionalism and focus on talent. The people agenda is core to the business and I see KPMG’s values reflected in all the interactions we have had so far as a Supervisory Board. During RAC meetings, we regularly discuss topics like culture, psychological safety, diversity and inclusion, talent development, reward and recognition, retention and attraction, particularly in light of the current scarcity of talent in the market. It is the human touch that really distinguishes KPMG and explains why we’re successful in attracting different talent to the firm. We regularly invite the Young Board Now to RAC meetings to share their views – a highly-valuable dialogue with the next generation and important input to our people agenda.”

Linda Hovius, Chair of the RAC

• 1The external auditor is assessed annually, using the following criteria: professional performance, communications, independence and professional criticism, and expertise/composition of the audit team. The auditor’s independence is also (re-) confirmed every year. In its latest assessment, the ARC concluded that BDO Audit & Assurance B.V., the external auditor, met the standards required.