In order to attract and retain managerial expertise, the remuneration of the members of the Executive Board and other senior executives is determined on the basis of the work they do, the value they create and conditions at comparable companies. The remuneration includes incentive programmes, which are to help align the interests of the Company’s management and shareholders, as the programmes support both short-term and long-term goals.
The remuneration of the Executive Board comprises salary, cash bonuses, share-based payments and other usual benefits. The members take out their own pension plans.
Neither the Executive Board nor the Supervisory Board receives a bonus on the completion of a takeover bid. The Executive Board’s terms of notice change on the completion of a takeover bid. The remuneration of the Executive Board and the Supervisory Board is presented in note 12 to the consolidated financial statements, which sets out the individual remuneration in 2010 of each member of the Executive Board and the Supervisory Board. The guidelines for the incentive programmes for the Executive Board were approved at the Annual General Meeting 24 March 2011. Please find the remuneration policy for the Supervisory Board & the Executive Board including the incentive guidelines for the Executive Board here. The Supervisory Board of Carlsberg A/S is not included in the Company’s incentive programmes.
Share option programmes exist for the Group’s Executive Board and other management personnel. The programmes entitle them to purchase B shares in Carlsberg A/S between three and eight years after the options have been granted. The exercise price is the market price during the first five days following the publication of the consolidated financial statements for the year. The number and value of share options granted and outstanding are presented in note 13 to the consolidated financial statements.
The option programme is supplemented by performance-related bonus schemes covering a proportion of the Group’s salaried employees.
In December 2010, the Supervisory Board decided to establish a Remuneration Committee, which will comprise four of the members elected by the General Meeting, to make proposals on the remuneration policy, oversee compliance with the policy and verify that the information in the annual report on remuneration is correct, true and sufficient.