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 of the Executive Board is presented in the notes to the financial statements.
This remuneration includes incentive programmes which are to help align the interests of the Company’s management and shareholders, as these programmes support both short-term and long-term goals.
A share option programme for the Executive Board and a number of other senior executives in the Group has been running since 2001. The programme entitles these individuals to purchase B-shares in Carlsberg A/S between three and eight years after the options are granted. The exercise price is the market price during the first five days following the publication of the profit statement for the year.
The number and value of share options granted and outstanding are presented in the notes to the financial statements.
The option programme is supplemented with performance-related bonus schemes covering a proportion of the Group’s salaried employees.
The Board of Directors of Carlsberg A/S is not included in the Company’s incentive programmes.
Management holdings of Carlsberg shares
At the end of 2006 the members of the Board of Directors held a total of 2,886 A-shares and 3,680 B-shares in Carlsberg, corresponding to a combined market value of DKK 3.5m, and the members of the Executive Board held a total of 2,880 A-shares and 8,346 B-shares, corresponding to a market value of DKK 6.2m.
Members of the Board of Directors and the Executive Board are included in Carlsberg’s insider register and must therefore disclose any trading in the Company’s shares. These persons and their spouses and children under the age of 18 may trade in Carlsberg’s shares only during a four-week period after the publication of financial statements or other similar statements.