Insight

Remuneration in Danish Large-Cap Companies

Benchmarking executive management and board remuneration 

Deloitte’s executive remuneration benchmark report for 2019 has landed; an overview of the executive and board remuneration practices for companies listed within the Danish Large-Cap Index.

Though 2019 may seem like a distant memory for many – the world has certainly changed in many respects since companies began issuing their remuneration reports for 2019 – our report does the important work of providing a benchmark of remuneration data from a pre-COVID-19 world.

This will prove to be an important baseline for making decisions regarding executive and board remuneration in the coming years.

“As Denmark and the world emerges on the other side of the global COVID-19 pandemic, and our businesses and industries reopen more globally, we may well be entering a completely different world than that of 2019,” says Martin Faarborg, Partner and Corporate Governance Leader in Deloitte.

“Deloitte continues to stand ready to assist our clients as they navigate this new normal — a world where the foundations of capitalism and the social contract are called into question, remuneration and governance practices are rapidly shifting, and society comes together to emerge from life after quarantine.”

Key findings from the report:

• Variable remuneration of executive directors comprises c. 34% of total remuneration – a 3%-point decrease compared to last year

• CEO base salaries have increased 4.8% from 2018, broadly in line with the annualised increase of 5% since 2015

• Allocation of long-term share-based payments as a percentage of base salary have decreased from 36% to 31% across all executive directors

• Average board member pay, including committee fees, was unchanged at DKK 0.7m (2018: DKK 0.7m)

• There was one female chairperson in Danish Large-Cap companies in 2019, and 20 percent of deputy chairpersons were female in Danish Large-Cap companies.

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