Our Remuneration Policy

Makes visible the fair, performance-based and results-oriented compensation of our Executive Management and Board of Directors.

Remuneration Policy and Remuneration Report

In accordance with the Danish Companies Act and the Danish Corporate Governance Recommendation Lundbeck has prepared a Remuneration Policy. The policy was approved with sufficient majority at Lundbeck’s Annual General Meeting on 24 March 2020. Further, Lundbeck has in accordance with the Danish Corporate Governance Recommendations prepared a Remuneration Report. Both the Remuneration Policy and the Remuneration Report can be downloaded from this webpage.

Decision Process and Approval Framework

Each of the registered Executive Management members participates in a short-term incentive program that provides an annual bonus for the achievement of predetermined targets for the preceding financial year. The short-term incentive payment levels will be determined by the Board of Directors from year to year. The CEO has a target of up to 100% and a maximum of 117% of the fixed annual base salary. The other registered Executive Management members have a target of up to 33.3% and a maximum of up to 50% of the fixed annual base salary. All registered Executive Management members may receive payment below target and potentially no payment in case of performance below target.

Executives 1

  2019 DKKm 2020 DKKm
Short-term staff benefits 85 96
Retirement benefits 11 11
Other social security costs 1 1
Equity- and cash-settled incentive programmes 10 11
Total 107 119

1) Executives are persons who report directly to the registered Executive Management. 

Executive Management

2020 DKKm Deborah Dunsire
President & CEO2
Anders Götzsche
Executive Vice President, CFO
Jacob Tolstrup
Executive Vice President, Commercial Operations
Lars Bang
Executive Vice President, Product Development & Supply
Per Johan Luthman, Executive Vice President, R&D3
Salary 9.6
5.0 3.9 4.0 3.8
Cash bonus 9.1
1.7 1.8 1.7
Pension - 1.3
1.0 1.1 1.0
Other benefits 0.4
0.2 0.2 0.2
Equity- and cash-settled incentive programs 3.9 2.3 1.9 2.2 1.1
Total 23 11.2 8.7 9.3 7.8
Tax indemnification 2.7        
Total after tax indemnification 25.7 11.2 8.7 9.3 7.8

2) According to the employment agreement with Deborah Dunsire, Lundbeck will pay the difference in taxation on investment return from personal assets between the US and Denmark. 
3) Per Johan Luthman joined H. Lundbeck A/S in February 2019.

Remuneration - Board of Directors

The total remuneration of the Board of Directors for 2020 amounted to DKK 7.5 million (DKK 6.8 million in 2019). The amount includes fees for participation in the Audit Committee of DKK 0.7 million (DKK 0.7 million in 2019), the Remuneration Committee of DKK 0.7 million (DKK 0.7 million in 2019), the Scientific Committee of DKK 0.7 million (DKK 0.7 million in 2019) and travel allowances of DKK 0.8 million (DKK 0.5 million in 2019) for board members with permanent residence outside of Europe. The remuneration for 2020 is consistent with the remuneration presented at the Annual General Meeting held on 24 March 2020.The members of the Board of Directors held a total of 47,313 Lundbeck shares at 31 December 2020 (47,313 shares in 2019).The total remuneration of the chairman of the Board of Directors amounted to DKK 1.7 million (DKK 1.6 million in 2019). The total remuneration of the deputy chairman of the Board of Directors amounted to DKK 1.2 million (DKK 1.1 million in 2019). These amounts include fees for participation in Board committees.

More from Lundbeck

Reports and Presentations

Lundbeck’s download center for key annual reports and investor presentations.

Shareholders and Dividends

Who owns Lundbeck and information on the dividends thereof.

Executive Management

The Executive Management team consists of 8 members led by Deborah Dunsire, CEO.