Board committees
The Board of Directors has decided to set up an audit committee, a nomination committee, a remuneration committee and an IT security committee.
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Evaluation of the Board
Once a year, the Chairman of the Board of Directors performs an evaluation of the Board’s work. The evaluation is performed either through personal, individual interviews with the Board members or by means of a questionnaire to be filled out by the individual Board members. In both instances, the findings of the evaluation are presented and discussed at the subsequent Board meeting. At least every third year, the evaluation is performed with external assistance. The evaluation was performed by means of a questionnaire in 2021, as the evaluation the year before was performed with external assistance based on individual meetings with each Board member.
Overall, the evaluation confirmed that the Board is satisfied with its governance structures and confirmed that the interaction between the Board members is well-functioning. The Board of Directors is keen on keeping focus on and allocating time to the long-term strategic development of the company to continuously ensure that the potential of the company is exploited to the fullest. The collaboration between the Board of Directors and the Executive Board works well, and there is an open and trustful working atmosphere. The work performed by the Board takes its starting point in the annual wheel, which is continuously refined and updated and ensures the Board’s commitment and immersion into relevant areas.
Competences
The Board of Directors continuously strives to ensure that between them the Board members have the relevant knowledge and professional experience required to fulfil the company’s needs. These competences must cover the following areas:
• International management experience at corporate level
• Board experience from listed companies with international operations
• Industrial management experience
• Insight into globalisation challenges
• Profound knowledge of economics and finance
• Insight into and knowledge of the political aspects of business
• Board experience from multiple lines of business
• Academic level of education
Though Board members are up for election every year, they traditionally sit on the Board for an extended number of years. This ensures consistency and maximum insight into the conditions prevailing within the company and within the industry. This is considered to be extremely important in terms of the value that the Board of Directors brings to the company. In fact, it is considered just as important as the professional skills listed above.
Board of Directors’ fees
The basic fee for a Board member is DKK 400,000. The Chairman’s fee is three times the basic fee and the Deputy Chairman’s fee is twice the basic fee.
There is no separate fee for nomination, remuneration and IT security committee members. Audit committee members receive a fee of DKK 50,000.
The remuneration of the Board of Directors and the Executive Board is designed to support the strategic goals and to generate value in Demant and thus support Demant’s business strategy. Additionally, the remuneration policy supports a straightforward and transparent remuneration structure for the Board of Directors and the Executive Board. The remuneration policy was adopted at the Annual General Meeting held in 2020. A minor adjustment to the remuneration policy has been decided by the Board of Directors in February 2021.
Remuneration reports are published annually. The remuneration report for 2021 is available here.
Board meetings in 2021
In 2021, the Board of Directors convened on 6 occasions.