Board activities in 2024/2025

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

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

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

• Culture (creating a culture that encourages high performance, innovation, and integrity; supporting greater openness, diversity, and inclusion; and encouraging KPMG’s people to show accountability and leadership)

During the year, the Supervisory Board held eight meetings, based on the annual plan, each beginning with a closed preparatory session. The average attendance rate at all regular meetings was 98%; no member was frequently absent. The meetings addressed various topics – some of which were part of the Board’s annual planning, with others relating to events or developments during the year. The main topics discussed in 2024/2025 were:

• The investigation into answer sharing, including the root cause analysis, mitigating measures, the outcomes of continued monitoring and horizon scanning, the progress and conclusion of the AFM’s enhanced supervision program, and the Values First cultural change program.

• Recent developments and societally relevant issues in the firm’s operating environment, including the economic slowdown in light of global conflicts, rising prices, climate change, and the impact of AI.

• Digital and innovation, with the Board regularly reviewing progress on the firm’s strategy, focusing on the increasing adoption of AI and the intensifying competition in this field.

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

Functioning and activities of the Supervisory Board committees

The Supervisory Board operates through three committees: Assurance Quality, Audit & Risk, and Remuneration & Appointment. The terms of reference for these committees can be found on KPMG’s website. Where necessary, committee meetings are attended by subject matter specialists.

Assurance Quality Committee (AQC)

"In a rapidly evolving environment, KPMG’s focus on assurance quality is perhaps more important than ever. The AQC was therefore engaged during the year on key topics such as AI, Omnibus, and quality performance and control reviews. Having paid close attention to the remediation actions taken under enhanced AFM supervision, we are pleased that enhanced supervision has now been lifted and that the firm remains committed to embedding the desired culture and behaviors."

Sandra Berendsen, Chair of the AQC

Audit & Risk Committee (ARC)

“Alongside executing our core agenda, the ARC was closely involved in special topics including the Amstelveen remodeling, the Central Services transformation, and the impact of the Wet deregulering beoordeling arbeidsrelaties (DBA; assessment of employment relationships deregulation act). We also reviewed our enterprise risk management (ERM), paying close attention to cyber and IT risks. The arrival of Barbara Frohn means the ARC is returned to full strength as we move into the new financial year.”

Pascal Visée, Chair of the ARC

Remuneration & Appointment Committee (RAC)

“The design and implementation of Values First and the progress of the Central Services transformation were regular agenda items for the RAC in 2024/2025. We also discussed employee engagement, rewards and recognition, talent and skills development, AI, retention, and IDE. While we recognize management’s efforts to increase diversity in the organization, we continue to emphasize the need for attention to this area. Meanwhile, the RAC was fully engaged in the search for and onboarding of the Supervisory Board’s new Chair and ARC member. We were pleased to welcome Dirk Jan van den Berg and Barbara Frohn to these respective roles in June.”

Linda Hovius, Chair of the RAC