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UK-NOTPR-1010 | April 2022



Corporate Governance

Our Governance Framework

Lundbeck is committed to serving all its stakeholders. Our governance framework consists of rules and principles that support sustainable financial performance and long-term value creation for our shareholders and for our societies.

Lundbeck has a two-tier board structure consisting of the Board of Directors and the Executive Management. The two bodies are independent, and no person serves as a member of both.


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.

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 Lundbeck complies with all the recommendations from the Danish Committee on Corporate Governance as reflected in our corporate governance report.

Corporate governance model

At Lundbeck, we structure corporate governance processes through a number of managerial bodies which interact, control and depend on each other.

Internal control

The Board of Directors has a supervisory duty and the Executive Management to 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.

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 decentralised 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.

Audit Committee

The Board of Directors have set up an Audit Committee, who hold an advisory role, providing guidance on matters such as internal controls in financial reporting procedures, special financial and accounting issues, evaluation of financial reporting and other financial information and risk management.

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UK-NOTPR-0525 | April 2022