Remuneration
Our Remuneration Policy
Remuneration Policy and Remuneration Report
In accordance with the Danish Companies Act and the Danish Corporate Governance Recommendation Lundbeck has prepared a Remuneration Policy. The policy was approved with sufficient majority at Lundbeck’s Annual General Meeting on 24 March 2020. Further, Lundbeck has in accordance with the Danish Corporate Governance Recommendations prepared a Remuneration Report. Both the Remuneration Policy and the Remuneration Report can be downloaded below.
Decision Process and Approval Framework
Each of the registered Executive Management members participates in a short-term incentive program that provides an annual cash bonus based on the achievement of predetermined targets for the preceding financial year. The short-term incentive payment levels will be determined by the Board of Directors from year to year. The CEO has a target of up to 100% and a maximum of up to 117% of the fixed annual base salary. The other registered Executive Management members have a target of up to 33.33% and a maximum of up to 50% of the fixed annual base salary. All registered Executive Management members may receive payment below target and potentially no payment in case of performance below target.
Remuneration of key management personnel1
| 2021 DKKm | 2020 DKKm | |
| Short-term staff benefits | 104 | 96 |
| Retirement benefits | 10 | 11 |
| Other social security costs | 1 | 1 |
| Equity- and cash-settled incentive programmes | 12 | 11 |
| Total | 127 | 119 |
- Key management personnel are defined as persons who report directly to the registered Executive Management.
Executive Management
| 2021 DKKm | Deborah Dunsire1 President & CEO |
Anders Götzsche Executive Vice President, CFO |
Jacob Tolstrup Executive Vice President, Commercial Operations |
Lars Bang Executive Vice President, Product Development & Supply |
Per Johan Luthman, Executive Vice President, R&D3 |
Total |
| Salary | 9.9 |
5.1 | 4.0 | 4.1 | 4.0 | 27.1 |
| Cash bonus | 8.0 | 1.6 |
1.3 | 1.3 | 1.3 | 13.5 |
| Pension | - | 1.3 |
1.0 | 1.1 | 1.1 | 4.5 |
| Other benefits | 0.2 |
0.2 |
0.2 | 0.2 | 0.2 | 1.20 |
| Equity- and cash-settled incentive programs | 4.2 | 0.5 | 2.2 | 2.3 | 1.8 | 11.0 |
| Total | 22.3 | 8.7 | 8.7 | 9.0 | 8.4 | 57.1 |
| Tax indemnification | 34.3 | - | - | - | - | 34.3 |
| Total after tax indemnification | 56.6 | 8.7 | 8.7 | 9.0 | 8.4 | 91.4 |
| 2020 DKKm | Deborah Dunsire1 President & CEO |
Anders Götzsche Executive Vice President, CFO |
Jacob Tolstrup Executive Vice President, Commercial Operations |
Lars Bang Executive Vice President, Product Development & Supply |
Per Johan Luthman, Executive Vice President, R&D3 |
Total |
| Salary | 9.6 |
5.0 | 3.9 | 4.0 | 3.8 | 26.3 |
| Cash bonus | 9.1 |
2.4 |
1.7 | 1.8 | 1.7 | 16.7 |
| Pension | - | 1.3 |
1.0 | 1.1 | 1.0 | 4.4 |
| Other benefits | 0.4 |
0.2 |
0.2 | 0.2 | 0.2 | 1.2 |
| Equity- and cash-settled incentive programs | 3.9 | 2.3 | 1.9 | 2.2 | 1.1 | 11.4 |
| Total | 23.0 | 11.2 | 8.7 | 9.3 | 7.8 | 60.0 |
| Tax indemnification | 2.7 | - | - | - | - | 2.7 |
| Total after tax indemnification | 25.7 | 11.2 | 8.7 | 9.3 | 7.8 | 62.7 |
- According to the employment agreement with Deborah Dunsire, Lundbeck is entitled to pay the difference in taxation on investment return from personal assets between the U.S. and Denmark.
Remuneration - Board of Directors
The total remuneration of the Board of Directors for 2021 amounted to DKK 8.5 million (DKK 7.5 million in 2020). The amount includes fees for participation in the Audit Committee of DKK 0.7 million (DKK 0.7 million in 2020), the Remuneration Committee of DKK 0.7 million (DKK 0.7 million in 2020), the Scientific Committee of DKK 0.9 million (DKK 0.7 million in 2020) and travel allowances of DKK 1.1 million (DKK 0.8 million in 2020) for board members with permanent residence outside of Europe. The remuneration for 2021 is consistent with the remuneration approved at the Annual General Meeting held on 23 March 2021.
The members of the Board of Directors held a total of 44,113 Lundbeck shares at 31 December 2021 (47,313 shares in 2020).
The total remuneration of the chairman of the Board of Directors amounted to DKK 1.7 million (DKK 1.7 million in 2020). The total remuneration of the deputy chairman of the Board of Directors amounted to DKK 1.2 million (DKK 1.2 million in 2020). These amounts include fees for participation in Board committees.
More from Lundbeck
Lundbeck’s download center for key annual reports and investor presentations.
Who owns Lundbeck and information on the dividends thereof.
The Executive Management team consists of 8 members led by Deborah Dunsire, CEO.