BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

Corporate governance GRI 102-18, 102-19, 102-20, 102-21, 102-22, 102-23, 102-24, 102-26, 102-28, 102-29, 102-30, 102-31, 102-35 and 102-36 The corporate governance system of BBVA Bancomer, S.A., Institución de Banca Múltiple, BBVA Bancomer Financial Group, serves as the linchpin to its corporate integrity and the organization's ethical and efficient functioning. It comprises a set of principles, standards and elements that regulate and frame relations between the company, the Bank's management, shareholders and other stakeholders. The governance system is rooted into the following principles, in accordance with the Corporate Governance System of BBVA: 1. A suitable composition and structuring of governance bodies. 2. A clear distribution of functions between the Board of Directors and its committees, and between these and Senior Management. 3. A solid decision-making process and a robust reporting model. 4. Complete monitoring, oversight and control of the Bank's management. The Board of Directors is the body entrusted with overseeing the institution. Its members are designated at the Annual General Meeting of Shareholders. The Annual General Meeting is entrusted with assessing the Board's performance by approving the Board's Annual Report and financial statements, as well as ratifying each director's membership of the Board. The Board is responsible for approving objectives, guidelines and policies with regard to the origination and management of lending activity, all of which must be coherent and compatible with, as well as complementary to, those established for Integrated Risk Management. The Board delegates authority to committees and, if applicable, to officers of the institution to design the aforementioned objectives, guidelines and policies. The Board hears and, as the case may be, approves a report from the Audit Committee on the objectives of the Internal Control System and guidelines for its implementation. Composition of the Board of Directors The Annual General Meeting of Shareholders of BBVA Bancomer is the governance body authorized to designate the individuals who are to sit on the Bank's Board of Directors. Meanwhile, Board members are authorized, in accordance with applicable law and the Bylaws of BBVA Bancomer, to designate the individuals who are to sit on its various committees. The process for selecting and appointing members of the Board of Directors is set out in applicable law and in the bylaws of BBVA Bancomer. 24
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