Insights in Executive Remuneration

Within Nordic Region and at Europe’s largest companies

February 2021

These reports provide an overview of executive remuneration practices, shareholder views, and the level of implementation of SRD II in the largest companies across Europe (iStoxx 100 index) and also the largest listed companies in Denmark, Sweden, Norway and Finland.

Included are details of AGM season trends, pay outcomes, incorporation of ESG and considerations for decision-making going forward, which will provide an important baseline for executive remuneration decisions in coming years.

On top of the complications brought about by a global pandemic, 2020 also brought about change in Europe in the form of regulatory requirements. Listed companies had to prepare their remuneration reports in accordance with the Shareholder Rights Directive (“SRD”) for the first time in 2020. Where countries do not already have detailed remuneration reporting regimes in place, SRD is likely to have led to significant changes in scrutiny from and engagement with shareholders on executive pay. It is clear that remuneration committees will continue to face a complex environment in 2021.

In the context of COVID-19, many areas of executive remuneration are likely to come under intense scrutiny. Investors will expect the treatment of pay for executives to reflect the shareholder experience, including share price performance and where dividend payments have been cancelled. There will also be pressure on companies to ensure that executives are treated in a way that is consistent with the wider workforce, especially where there have been lay-offs and company-wide pay cuts.

Each company is different and will have been impacted in different ways by the crisis. A key challenge for committees will be balancing the need to attract and incentivise the leadership required to drive European business recovery, in the context of a growing focus on building a fairer society. Deloitte continues to stand ready to assist our clients as they navigate this “new normal”.

Using the data
When using the report we would strongly recommend you consult your advisers on the interpretation of the data and its relevance to your particular circumstances.

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