« The company has entered into an agreement in principle with the government authorities, which includes the conditions deemed necessary for liquidation. The entity believes that the expense previously recorded takes due account of the consequences of liquidation in relation to the financial statements. The agreement-in-principle remains subject to memory in fully integrated documents and final approval by government and corporate mandated officials. Fresenius stated that as of 2012, he had received certain communications stating that there was behavior in countries outside the United States regarding possible violations of the FCPA and other anti-corruption laws. « The company`s supervisory board conducted investigations through its audit and corporate governance committee, with the support of independent consultants, » Fresenius said in its February 20 submission. In Saudi Arabia, Fresenius offered or provided valuables to health workers and public physicians run or employed by a Saudi medical organization and a public charity. In particular, Fresenius set up a cashing cheque system in which employees were directed to cash cheques, which had been returned on their behalf, and returned the money to the distributor manager and Fresenius agents, where he [the agent] agreed to have the money delivered to Saudi government doctors and others. In addition, public physicians were awarded fictitious advisory and commission contracts for which no benefits were provided. Fresenius also entered into false collection commission contracts, made payments to a state charity and gave gifts and payments to public doctors for travel without professional or educational justification, the company acknowledged. All information received will be subject to careful and thorough review. If an offence is found, we will take the necessary steps to remedy the situation. If necessary, we will take concrete action and improve our business processes.
The goal is to continually improve compliance measures to achieve what is important to us: quality, integrity, accountability and reliability for the well-being of our patients. This recommendation is not being met. Service agreements with board members do not provide caps for certain amounts for all compensation items and, therefore, no caps for certain amounts for total compensation. Short-term defined benefit pay (the variable bonus) is capped. With respect to stock options, phantom Stocks and Performance Shares as long-term compensation elements, service agreements with board members provide for the possibility of prescription, but no limits for certain amounts. The introduction of caps on certain amounts of these stock-based compensation elements would be contrary to the basic idea that board members adequately participate in the company`s risks and economic opportunities. Instead, Fresenius Medical Care takes a flexible approach that takes into account each individual case. In situations of extraordinary stock-based compensation developments, which are not related to board performance, the supervisory board may cap stock-based compensation. The mammoth colony comes after a five-year investigation.
As part of the agreement, Fresenius, which merged with NMC in 1996, also approved the most comprehensive corporate integrity agreement (CIA) ever imposed on a company that deals with federal health programs. German healthcare company Fresenius Medical Care announced in a financial report that it had reached an « agreement in principle » with US authorities to investigate possible violations of the Foreign Corrupt Practices Act.