Note 4 - Management remuneration

Executive Board of
Management Directors Total
2012       DKK million DKK million DKK million  
Salaries and other short-term benefits 33  39 
Contribution-based pension         - 
Total remuneration excl. expensed stock-based incentive programs 41  47 
Expensed stock-based incentive programs       44    -  44   
Total remuneration 85  91 
Executive Board of
Management Directors Total
2011       DKK million DKK million DKK million
Salaries and other short-term benefits 29  35 
Contribution-based pension         - 
Total remuneration excl. expensed stock-based incentive programs 35  41 
Expensed stock-based incentive programs       51    -  51 
Total remuneration 86  92 
 
Executive Management
Remuneration to Executive Management comprises a base salary, pension, a bonus scheme and stock-based incentive programs. No member of Executive Management has a base salary exceeding DKK 6 million. The variable part of the total remuneration (cash bonus and stock-based programs) is relatively large compared with the base salary and is dependent on achievement of individual targets and the company’s targets for financial, social and environmental results. The maximum cash bonus is equivalent to five months’ fixed base salary. General guidelines for remuneration of Executive Management are approved by the Annual Shareholders’ Meeting, and more detailed information is available at www.novozymes.com.
 
Members of Executive Management have contracts of employment containing standard conditions for executive officers of Danish listed companies, including the periods of notice that both parties are required to give and competition clauses. If the executive officer's contract of employment is terminated by the company without there having been misconduct on the part of the executive officer, the executive officer has the right to compensation, which, depending on the circumstances, may amount to a maximum of three years´ base salary and pension contributions.
 
Board of Directors
Remuneration paid to individual members of the Board of Directors was:
Board of Audit 2012 Board of Audit 2011
Directors Committee Total Directors Committee Total
Remuneration   DKK '000 DKK '000 DKK '000 DKK '000 DKK '000 DKK '000  
Henrik Gürtler 1,250    -  1,250  1,250    -  1,250 
Kurt Anker Nielsen 833  417  1,250  833  417  1,250 
Paul Petter Aas* 69    -  69  417    -  417 
Jerker Hartwall**   -   -    - 69  35  104 
Søren Henrik Jepsen 417    -  417  417    -  417 
Lars Bo Køppler 417    -  417  417    -  417 
Ulla Morin 417    -  417  417    -  417 
Lena Olving*** 417  208  625  347  174  521 
Agnete Raaschou-Nielsen*** 417  208  625  347  174  521 
Jørgen Buhl Rasmussen*** 417    -  417  347    -  347 
Walther Thygesen**   -   -    - 69  35  104 
Mathias Uhlén   417    -  417  417    -  417   
Remuneration, total 5,071  833  5,904  5,347  835  6,182 
* Resigned on February 29, 2012
** Resigned on March 1, 2011
*** Joined on March 1, 2011
 
Directors' remuneration does not include minor social security contributions paid by Novozymes.
 
Holdings of equity instruments
The following members of the Board of Directors and Executive Management hold shares of stock and stock options in Novozymes A/S:
 
Shares at Purchased Shares at
Jan. 1, during the Sold during Dec. 31, Market value
Shares of stock     2012 year the year 2012 DKK million  
Kurt Anker Nielsen 49,845    -    - 49,845   7.9
Søren Henrik Jepsen 280  146    - 426   0.1
Ulla Morin 2,080    -    - 2,080   0.3
Agnete Raaschou-Nielsen     430    -    - 430   0.1  
Total, Board of Directors 52,635  146    - 52,781   8.4
 
Steen Riisgaard 58,575    -    - 58,575   9.3
Benny D. Loft 2,260  189,120  189,120  2,260   0.4
Per Falholt   - 64,900  64,900    -    -
Peder Holk Nielsen   - 189,120  189,120    -    -
Thomas Videbæk   - 184,570  184,570    -    -
Thomas Nagy     500  184,570  185,070    -    -
Total, Executive Management 61,335  812,280  812,780  60,835   9.7
 
Options at Additions Exercised Options at
Jan. 1, during the during Dec. 31, Market value
Share options including stock awards     2012 year the year 2012 DKK million
Steen Riisgaard 710,110    -    - 710,110   49.2
Benny D. Loft 310,335    -  189,120  121,215   8.3
Per Falholt 310,335    -  64,900  245,435   18.2
Peder Holk Nielsen 310,335    -  189,120  121,215   8.3
Thomas Videbæk 302,865    -  184,570  118,295   8.1
Thomas Nagy     328,135    -  184,570  143,565   10.1
Total, Executive Management 2,272,115    - 812,280  1,459,835   102.2
 
Members of the Board of Directors do not hold stock options. However, employee-elected board members hold a limited number of stock options in Novozymes A/S due to Group-wide employee stock-option programs.
 
For further information on stock-based payment, refer to Note 23.
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