Remuneration structure

Topdanmark’s remuneration policy is intended to optimise the long-term value creation at group level and support Topdanmark’s business strategy.
At the same time, Topdanmark’s remuneration policy should strengthen the attraction, retention and motivation of qualified members of Topdanmark's management, as well as ensure consistency between the interests of management, the company and shareholders.

Topdanmark’s remuneration policy is intended to optimise the long-term value creation at group level and support Topdanmark’s business strategy.
At the same time, Topdanmark’s remuneration policy should strengthen the attraction, retention and motivation of qualified members of Topdanmark's management, as well as ensure consistency between the interests of management, the company and shareholders.

Remuneration components - Key principles

Remuneration of the Executive Board and other Material Risk-Takers (including management in Orienteringsforum) should be competitive with remuneration at comparable companies and can be composed by the following remuneration components:

  • Fixed basic remuneration
  • Additional remuneration
  • Pension
  • Other benefits
  • Employee shares
  • Option-based long-term incentive programme (“LTI programme”)
  • Cash- and share-based short-term incentive programme (“STI programme”)
  • Extraordinary variable remuneration.

Topdanmark’s LTI programme for the Executive Board and Orienteringsforum is a revolving share option scheme which entails that a fixed proportion equivalent to 10% of (the cash salary + pension + company car value) is paid in the form of share options according to a revolving option programme.

The Executive Board can grant up to a total of 200,000 options to employees, including other Material Risk Takers, who have made special efforts or in other ways contributed extraordinarily to the value creation in Topdanmark.

Topdanmark’s STI programme is a cash- and share-based incentive programme which is tied up with the completion of a number of predefined goals for each member of the programme. STI bonus cannot exceed 40% of the employee’s fixed basic salary including pension.

The variable remuneration for a director cannot exceed 50% of the director’s fixed basic remuneration including pension. The remuneration for other Material Risk Takers cannot exceed 100% of the employee’s fixed basic remuneration including pension. For directors, the share options and other derivatives cannot exceed 12.5% of the fixed basic remuneration including pension on the time of calculation.




Annual report and remuneration report

In its Annual Report, Topdanmark publishes information in accordance with legislation 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.

In addition, in the remuneration report, Topdanmark discloses the information on the total remuneration received by each member of the Board of Directors and the Executive Board from the Topdanmark Group for the financial year concerned. The remuneration report includes for each member of the Board of Directors and the Executive Board, the total remuneration divided into components in accordance with the adopted remuneration policy for the financial year concerned.




Remuneration policy

The Board of Directors shall regularly, and at least once a year, review the Remuneration Policy in order to ensure that it continues to meet and be consistent with the statutory requirements, Topdanmark's business strategy, values, long-term goals and the principles of customer and investor protection, as well as being in line with and promoting healthy and efficient risk management.

The remuneration policy and any amendments must be approved by the shareholders at the Annual General Meeting at least every four years. The remuneration policy in force has been adopted at the Annual General Meeting 2 April 2020 and is available at this website.




Remuneration committee

In accordance with applicable laws, Topdanmark has established a Remuneration Committee. The composition of the Remuneration Committee shall enable its members to make a qualified and independent assessment of whether remuneration in Topdanmark is accordance with relevant legislation.