Remuneration of the Executive Committee and Board
The Board members receive an annual honorarium set at the Annual General Meeting. In addition to the above-mentioned honorarium, payment may be made to individual Board members who performed special tasks. The members of the Executive Committee have individual remuneration packages that are reviewed annually by the Chairman. The Executive Committee receives a gross salary, which includes a pension contribution made by the company. In addition to the fixed salary, there is a bonus scheme which is linked to the financial development of Danfoss for that year. Warrants are also included, as described in detail in the section. Members of the Executive Committee can choose to retire at the age of 63 and will then continue to be paid a sum equal to their gross salary until the age of 65. The members of the Executive Committee have a notice period of between one and three years, depending on the length of time they have been on the Executive Committee. Executive Committee members are entitled to severance pay equal to a period of between 12 and 36 months’ salary if their employment ends for any reason other than their own resignation. All members of the Executive Committee are entitled to a redundancy scheme if Danfoss is taken over by another company and in such a case may also resign at short notice. Any takeover will not oblige the new owner to honour warrants granted.