Corporate governance

Corporate governance at Lundbeck involves the way in which the company is managed and controlled, the guidelines that regulate the interaction between our Executive Management, Board of Directors and shareholders as well as the internal control and audit processes of our business.

What is corporate governance?
The Danish Committee on Corporate Governance defines corporate governance as follows:

"The goals, according to which a company is managed, and the major principles and frameworks which regulate the interaction between the company's managerial bodies, the owners as well as other parties, who are directly influenced by the company's dispositions and business (in this context jointly referred to as the company's stakeholders). Stakeholders include employees, creditors, suppliers, customers and the local community.”

Corporate governance reporting in Lundbeck
Lundbeck is strongly focused on responding to the most recent recommendations of the Danish Committee on Corporate Governance. The Board of Directors and Executive Management broadly share the committee’s views and have followed the new recommendations. Lundbeck’s corporate governance report outlines which recommendations we comply with, partly comply with, and do not comply with, and the reasons why.

Corporate governance model
At Lundbeck, we structure corporate governance processes through a number of managerial bodies which interact, control and depend on each other. Corporate governance at Lundbeck can be structured as illustrated in our corporate governance model below.

Internal control
The Board of Directors has a supervisory duty and the Executive Management the overall responsibility for Lundbeck’s risk management and internal controls in relation to the financial reporting process, including compliance with relevant legislation and additional disclosure requirements pertaining to financial reporting.

Read more about our internal control procedures.

Risk management
The principal aim of Lundbeck’s risk management is to strike the right balance between risk exposure and value generation. Lundbeck assesses the probability of an event occurring and the potential impact for the company in terms of financial loss or reputational damage. Risk evaluations carried out by our decentralized units are regularly reviewed by the risk management team through clearly-defined reporting, decision-making and follow-up procedures. The overall risk exposure is then evaluated by our central Risk Office.

Read more about our risk management set-up.

Audit Committee
The Board of Directors has set up an Audit Committee, which has an advisory role relative to the Board of Directors, including on matters such as internal controls in the financial reporting procedures, special financial and accounting issues, evaluation of financial reporting and other financial information and risk management.

Corporate governance report

Headquarter building

Lundbeck's Board of Directors position on the corporate governance recommendations made by NASDAQ Copenhagen A/S


2015 version
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