The Board of Directors has decided to set up an audit committee, a nomination committee, a remuneration committee and an IT security committee.
Evaluation of the Board
Once a year, the Chairman of the Board evaluates the Board’s work. Every other year, such evaluation is performed through personal, individual interviews with the Board members by the Chairman of the Board, and every other year, the evaluation is carried out by means of questionnaires to be filled out by the Board members. In both instances, the results of the evaluation are discussed at the subsequent Board meeting.
In connection with the evaluation in December 2019, the Board members expressed great satisfaction with the manner in which the Board works emphasising the constructive working climate in the Board where trust and openness are key elements. The Board considered the evaluation procedure appropriate and satisfactory, but nevertheless decided to include external assistance when the next evaluation is due.
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 350,000. 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 on 10 March 2020.
Remuneration reports are published annually. The remuneration report for 2019 is available here.
Board meetings in 2019
In 2019, the Board of Directors convened on seven occasions.