Topdanmark's remuneration policy is intended to optimise long-term value creation at a Group level
To base the remuneration of the Executive Board and a number of executives upon a fixed basic pay, of which 10% is paid as share options.
To make management's / employees' performance correlate better with shareholders' demand for value creation via a share option / warrant scheme.
Topdanmark's remuneration policy is intended to optimise long-term value creation at a Group level. The General Meeting has adopted "Remuneration policy of the Topdanmark Group including general guidelines for performance-related pay" in accordance with Section 6 of the Danish Executive Order on Remuneration Policy and Remuneration in Insurance Companies and Insurance Holding Companies and Section 139 of the Danish Companies Act.
In its Annual Report Topdanmark publishes information on the total remuneration at an individual level paid to each member of the Board of Directors and the Executive Board by companies of the Topdanmark Group.
The remuneration package of the Executive Board and a number of the heads of the divisions and service functions is based on a fixed basic salary. A fixed proportion, i.e. 10% of (the total of cash salary + pension + the value of a company car), is paid as share options. The Board of Directors may decide to pay performance-dependent bonuses as partial alternative or allowance of the fixed basic salary to one or more members of the Executive Board and/or to members of Orienteringsforum. The Performance-dependent bonuses are contingent upon the Director's fulfilment of a number of performance objectives set by the Board of Directors. No performance-related bonuses are paid in addition to this.
The share price reflects the expected value creation potential at Group level. This is one of the reasons why Topdanmark believes that as a main rule the granting of share options rather than individual bonuses encourages the executives to be more holistic in their approach to value creation.
Besides the revolving scheme for the Executive Board and the Orienteringsforum, the Executive Board may grant options for up to a total of DKK 200,000 to employees who have made special efforts or otherwise contribute extraordinarily to value creation in the Company in the year of granting.
In order to make an independent evaluation of whether the Company's remuneration policy and other remuneration matters are appropriate and observed in respect of the Topdanmark Group's size and complexity, Topdanmark has set up a remuneration committee.
Besides the Remuneration Committee, employees, with the relevant educational background and experience, from the Group's HR department, the group legal department and the compliance function are involved in preparing the remuneration policy and controlling the observance of it.