Remuneration policy
The Board has adopted a Remuneration Policy which is designed to attract, retain and motivate the board members and executives. Remuneration to the Board and Executive Management must be at a competitive level compared to other major Danish companies and similar international pharmaceutical companies.
Board members
Each board member receives a fixed fee per year at a competitive level.
The chairmanship recommends to the Board the amount, which is reported in the Annual Report. The total remuneration of the board members is approved by the Annual General Meeting in connection with the approval of the Annual Report.
Board members receive a fixed amount while the chairmanship receives a multiplier thereof: The chairman (2.5 times) and the vice chairman (1.5 times).
The Audit Committee also receives a multiplier thereof in addition to the director fee: The Audit Committee chairman (1.25 times) and an Audit Committee member (0.5 times).
Board members are not offered stock options, warrants or participation in other incentive schemes.
Executives
Executive remuneration is evaluated against a Danish benchmark of large companies with international activities. The remuneration package consisting of a base salary, cash bonus, pensions, non-monetary benefits and a long-term incentive is determined by the Board, and should align the interests of the executive with those of the shareholders.
All executives hold stock options granted in previous years. None of these options have been re-priced.
Executives are, in the event of termination by Novo Nordisk or by the individual due to a merger, acquisition or takeover by an external company, entitled to a severance payment of up to 36 months' salary plus pension contribution.
This page has been assessed by PricewaterhouseCoopers as part of its assessment of Novo Nordisk’s statement that it reports ‘in accordance’ with GRI. Please refer to Audit and assurance for a full description of the nature of assurance offered.
