Treasury shares and LTI units as a percentage of outstanding shares

Source: Deloitte analysis

Note: When outstanding shares are undisclosed, total shares are used as a proxy.

Note: All companies, which disclose the number of outstanding LTI units for at least 1 LTI programme, have been included, leaving 27 companies.

0%

20%

40%

60%

80%

100%

120%

140%

0% 20% 40% 60% 80% 100% 120% 140%

LTI

STI

57%

28%

28%

15%

15%

13%

17%

6%

11%

2%

6%

21%

-Other financial KPIs

Unknown EBITDA/EBIT Other non-financial KPIs TSR/share price None EPS Revenue Cash flow Individual Undisclosed Customer service KPIs

0 5 10 15 20 25 30 35 40

- 1 2 3 4 5 6 7 8 9

Number of programmes

Vesting period average : 2.9 Programme expiry average: 5.1

Treasury shares average: 2.9% LTI outstanding average: 1.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

CEO’s average: 65% Other executive board members average: 61%

2013 2014 2015 2016

5.0

2.9

4.4 5.5 5.8

3.2

5.0

6.6 5.8

3.6

5.2

6.8 6.1

4.0

5.1

7.1

Average 25th percentile Median 75th percentile

DKKm

PSU & RSU Options Matching shares Warrants

Incentive programme types

Source: Deloitte analysis

57%

17%

17%

9%

Total remuneration

According to IFRS, executive remuneration must be disclosed in a company’s annual report. The level of detail, of which companies disclose annual reports, varies and some companies disclose detailed remuneration for each executive director, while others report only for the group of executive directors as a whole. Remuneration is typically disclosed on the different types of pay (base salary, pension, STI and LTI), but for a small number of companies remuneration is only disclosed at the level of total amounts.

•

Companies disclosing for all executive directors divided into different types of pay: #28 of 37 or 76%

•

Companies disclosing for individual CEOs divided into different types of pay: #20 of 37 or 54%

•

Companies disclosing for individual CFOs divided into different types of pay: #15 of 37 or 41%

Below we show the composition of remuneration of executive directors for the last 4 years. Around 56%

of executive directors’ remuneration consisted of

base salary in 2016, while variable pay (bonus and LTI)

comprised around 37%. During the last 4 years, the

split between fixed and variable pay has shifted so that

variable pay now comprises 6 percentage points more

compared to 2013. Average base salary of executive

directors also increased considerably during this period

(see below), but bonus and LTI increased even more.

Remuneration in Danish Large Cap companies

12

The figure below shows that CEOs in general have a more variable pay compared to CFOs and Other Executive Directors. Like executive directors in general, CEOs experienced an increase in variable pay between 2013 and 2016, which increased by 11 percentage points from 30% to 41%.

Similar analysis for CFOs shows variable pay of 32% in 2016, which is 3 percentage points lower compared to 2013 when variable pay was 35%

of total remuneration.

Remuneration of executive directors 2013-2016

CEO remuneration 2013-2016

61%

58%

56%

56%

7%

6%

5%

6%

1%

1%

1%

1%

16%

18%

19%

19%

15%

17%

19%

18%

2013

2014

2015

2016

Base salary Pension Other Bonus LTI

Base salary Pension Other Bonus LTI

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only companies for which Executive Director remuneration is disclosed for the entire period are included. This includes 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only companies for which CEO remuneration is disclosed for the entire period are included.

Further, we apply both CEOs for GN. This includes 19 companies and 20 observations.

58%

57%

52%

53%

6%

6%

6%

5%

1%

1%

1%

1%

15%

17%

20%

20%

15%

19%

21%

21%

2013

2014

2015

2016

CFO remuneration 2013-2016

Variable pay 2013 – 2016

Base salary Pension Other Bonus LTI

CEO CFO Other

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

17% 15% 15%

25%

37% 40% 40%

47%

56%

67% 64%

2013 2014 2015 2016

1.7 2.5 3.0 3.7

4.0

6.1 6.2 6.0

9.1

10.3

13.1

10.8

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

16%

6%

13%

30% 28%

43%

39%

47%

55%

74% 73%

2013 2014 2015 2016

0.4

0.8 0.6 1.2

1.6

2.4 2.4

2.9 3.7

3.3

5.3 5.4

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

21% 22%

15% 11%

37% 36%

46%

30%

47% 51%

67%

48%

2013 2014 2015 2016

0.9 1.0

0.7 0.6

1.3

1.6 1.4 1.6

2.3 2.4

3.2

2.8

2013 2014 2015 2016

25th percentile Median 75th percentile

Yearly LTI issuance as a percentage of outstanding shares

Source: Deloitte analysis

Note: Only active programmes are included.

Note: Only programmes with disclosed LTI issuance amount in all 4 years are included in the graph, leaving 29 programmes.

0.03%

0.05%

0.04%

0.02%

0.09%

0.17%

0.15%

0.13%

0.23%

0.42%

0.45%

0.35%

2016 2015

2014 2013

25th percentile Median 75th percentile 25th percentile Median 75th percentile

All executive directors - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

CEOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

3%

9%

15% 16%

25%

30% 32% 30%

55%

62%

67%

50%

2013 2014 2015 2016

0.9

2.1

2.9 3.2

3.7 3.6

6.4

5.7 6.7

11.5 12.0

10.1

2013 2014 2015 2016

25th percentile Median 75th percentile 4%

12% 17%

23% 25%

31% 33% 34%

67% 65%

78%

68%

2013 2014 2015 2016

25th percentile Median 75th percentile 0.2

0.8 1.1

2.0 1.0

2.0

2.5 2.7

3.8 4.2

6.0 5.7

2013 2014 2015 2016

CFOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Maximum allocation as a percentage of base salary

Board remuneration

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Source: Deloitte analysis

Note: Only companies that disclose person remuneration throughout the 4-year period are included, leaving 36 companies.

Remuneration of chairpersons

25th percentile Median 75th percentile 25th percentile Median 75th percentile

1% 10% 13% 12%

30% 35%

29%

18%

58%

91%

57%

26%

2013 2014 2015 2016

0.1 0.5 0.6

0.4 1.1

1.3

1.1 1.0

2.3

3.7

2.7

1.7

2013 2014 2015 2016

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1.1

0.8

1.0

1.4 1.2

0.8

1.1 1.3 1.5

0.8

1.2

1.5 1.3

0.9

1.2

1.5

DKKm

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only companies for which CFO remuneration is disclosed for the entire period are included. This includes 15 companies.

Source: Deloitte analysis

Note: The samples of CEOs, CFOs and Other are not the same size, since we exclude companies that do not disclose individual remuneration for 2013-2016, leaving 20, 15 and 7 companies for CEOs, CFOs and Other, respectively. Further, we apply both CEOs for GN.

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

Figure: Composition of the total remuneration

Figure: Composition of the total remuneration:

CEO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

Base salary Pension Other Bonus LTI

Fixed salary Other Bonus LTI

Source: The results for US, UK and Continental Europe are from Conyen et al. (2011) and is based on information about remuneration in the annual financial reports.

The results for other pay in Denmark are from Bechmann (2011c) and is from an analysis of 39 listed companies in Denmark, with information based on the remunera-tion disclosed in the annual financial reports. Fixed salary, bonus and LTI for Denmark are based on an average for 114 listed companies (94 with incentive based payment and 20 without)

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

41% 41%

36%

35%

32%

39% 39%

28%

29%

27%

26%

2016 2015

2014 2013

29%

46%

55%

62%

6%

9%

13%

5%

20%

18%

21%

20%

46%

28%

12%

14%

US

UK

Continental Europe

Denmark

Base salery

Pension

0.00 2.00 4.00 6.00

DKKm 8.00

10.0 12.0 14.0 16.0

9.0

8.0

7.0

6.0

5.0

4.0 10.0

5.5 5.7 5.2

4.6

8.2

7.1 6.8

6.2

9.4 9.7

8.6 8.7

2016 2015

2014 2013

Source: The results for the US, the UK and Continental Europe are from Conyen et al. (2011) and are based on information on remuneration in annual reports. The results for other pay in Denmark are from Bechmann (2011c) and are from an analysis of 39 listed companies in Denmark, with information based on the remuneration disclosed in annual reports. “Fixed salary”, “Bonus” and “LTI” for Denmark are based on an average for 114 listed companies (94 with incentive-based payment and 20 without).

Source: Deloitte analysis

Note: The left graph represents the 26 companies that disclosed CEO salary in 2016, whereas the graph to the right represents the 20 companies that disclosed CEO salary in all 4 years. For GN Group, both CEOs have been included.

1 column represents 1 CEO

1 column represents 1 CFO

CFO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

DKKm

2016 2015

2014 2013

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

8.0 6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

3.9

3.3 3.7

3.9

4.8 4.6

4.3 4.5

6.0 6.1

5.3 5.4

Source: Deloitte analysis

Note: The left graph represents the 20 companies that disclosed CFO salary in 2016, whereas the graph to the right represents the 15 companies that disclosed CFO salary in all 4 years.

Other Executive Directors’ base salaries 2016 (left) and for percentiles for 2013 to 2016 (right)

All executive directors - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

DKKm

2016 2015

2014 2013

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Deloitte analysis

Note: The left graph represents the 13 companies that disclosed Other Executive Directors’ base salary in 2016, whereas the graph to the right represents the 7 companies that disclosed Other Executive Directors´ base salary in all 4 years.

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of the entire management group as a whole, have been included with the aggregated totals. Companies that do not disclose single person or executive management salary split are excluded. 30 companies are included in 2016.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of entire management group as a whole, have been included with the aggregated total. Companies that do not disclose single person or executive management salary split are excluded. In total, data from 25 companies has been included in 2016.

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

1 column represents 1 executive director

3.3 3.2 3.1

2.8

5.1 5.2

4.7 4.3

6.3 6.2 6.3

6.3

Pension contribution as a percentage of base salary in 2016

0%

40%

30%

35%

25%

15%

20%

10%

5%

CEO average: 12%

CFO average: 11%

One column represents one executive director

Companies only disclosing Executive Management as a group: 9%

Other Executive Director average: 15%

Bonus payout as a percentage of base salary in 2016

CEO average: 60%

CFO average: 49%

One column represents one executive director

Companies only disclosing Executive Management as a group: 43%

Other Executive Director average: 31%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CEOs - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

CFOs- Development in bonus payout as a percentage of base salary (left) and DKKm (right)

STI and LTI in percentage of total salary (total management)

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Note: Companies that do not display STI and LTI remuneration in 2016 are excluded, leaving 35 companies.

Vesting criteria for LTI programmes

Source: Deloitte analysis

Note: “Unknown” indicates that the company does not disclose if vesting criteria apply, whereas

“Undisclosed” indicates an LTI programme that has vesting criteria that are undisclosed.

Note: “Other financial KPIs” include both unspecified financial KPIs and other financial KPIs than those shown in the table. In the same way, “Other non-financial KPIs” include unspecified non-financial KPIs and other non-financial KPIs than those shown in the table.

Note: The numbers do not sum to 100%, as 1 LTI programme can have more than 1 vesting criterion.

Vesting and duration for LTI programmes

Source: Deloitte analysis.

Treasury shares and LTI units as a percentage of outstanding shares

Source: Deloitte analysis

Note: When outstanding shares are undisclosed, total shares are used as a proxy.

Note: All companies, which disclose the number of outstanding LTI units for at least 1 LTI programme, have been included, leaving 27 companies.

0%

20%

40%

60%

80%

100%

120%

140%

0% 20% 40% 60% 80% 100% 120% 140%

LTI

STI

57%

28%

28%

15%

15%

13%

17%

6%

11%

2%

6%

21%

-Other financial KPIs

Unknown EBITDA/EBIT Other non-financial KPIs TSR/share price None EPS Revenue Cash flow Individual Undisclosed Customer service KPIs

0 5 10 15 20 25 30 35 40

- 1 2 3 4 5 6 7 8 9

Number of programmes

Vesting period average : 2.9 Programme expiry average: 5.1

Treasury shares average: 2.9% LTI outstanding average: 1.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

CEO’s average: 65% Other executive board members average: 61%

2013 2014 2015 2016

5.0

2.9

4.4 5.5 5.8

3.2

5.0

6.6 5.8

3.6

5.2

6.8 6.1

4.0

5.1

7.1

Average 25th percentile Median 75th percentile

DKKm

PSU & RSU Options Matching shares Warrants

Incentive programme types

Source: Deloitte analysis

57%

17%

17%

9%

Remuneration of executive directors 2013-2016

CEO remuneration 2013-2016

61%

58%

56%

56%

7%

6%

5%

6%

1%

1%

1%

1%

16%

18%

19%

19%

15%

17%

19%

18%

2013

2014

2015

2016

Base salary Pension Other Bonus LTI

Base salary Pension Other Bonus LTI

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only companies for which Executive Director remuneration is disclosed for the entire period are included. This includes 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only companies for which CEO remuneration is disclosed for the entire period are included.

Further, we apply both CEOs for GN. This includes 19 companies and 20 observations.

58%

57%

52%

53%

6%

6%

6%

5%

1%

1%

1%

1%

15%

17%

20%

20%

15%

19%

21%

21%

2013

2014

2015

2016

CFO remuneration 2013-2016

Variable pay 2013 – 2016

Base salary Pension Other Bonus LTI

CEO CFO Other

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

17% 15% 15%

25%

37% 40% 40%

47%

56%

67% 64%

2013 2014 2015 2016

1.7

2.5 3.0 3.7

4.0

6.1 6.2 6.0

9.1

10.3

13.1

10.8

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

16%

6%

13%

30% 28%

43%

39%

47%

55%

74% 73%

2013 2014 2015 2016

0.4

0.8 0.6 1.2

1.6

2.4 2.4

2.9 3.7

3.3

5.3 5.4

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

21% 22%

15% 11%

37% 36%

46%

30%

47% 51%

67%

48%

2013 2014 2015 2016

0.9 1.0

0.7 0.6

1.3

1.6 1.4 1.6

2.3 2.4

3.2

2.8

2013 2014 2015 2016

25th percentile Median 75th percentile

Yearly LTI issuance as a percentage of outstanding shares

Source: Deloitte analysis

Note: Only active programmes are included.

Note: Only programmes with disclosed LTI issuance amount in all 4 years are included in the graph, leaving 29 programmes.

0.03%

0.05%

0.04%

0.02%

0.09%

0.17%

0.15%

0.13%

0.23%

0.42%

0.45%

0.35%

2016 2015

2014 2013

25th percentile Median 75th percentile 25th percentile Median 75th percentile

All executive directors - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

CEOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

3%

9%

15% 16%

25% 30% 32% 30%

55%

62%

67%

50%

2013 2014 2015 2016

0.9

2.1 2.9 3.2

3.7 3.6

6.4

5.7 6.7

11.5 12.0

10.1

2013 2014 2015 2016

25th percentile Median 75th percentile 4%

12% 17%

23% 25%

31% 33% 34%

67% 65%

78%

68%

2013 2014 2015 2016

25th percentile Median 75th percentile 0.2

0.8 1.1

2.0 1.0

2.0

2.5 2.7

3.8 4.2

6.0 5.7

2013 2014 2015 2016

CFOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Maximum allocation as a percentage of base salary

Board remuneration

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Source: Deloitte analysis

Note: Only companies that disclose person remuneration throughout the 4-year period are included, leaving 36 companies.

Remuneration of chairpersons

Source: Deloitte analysis

Note: Only companies that disclose person remuneration throughout the 4-year period are included, leaving 29 companies.

25th percentile Median 75th percentile 25th percentile Median 75th percentile

1% 10% 13% 12%

30% 35%

29%

18%

58%

91%

57%

26%

2013 2014 2015 2016

0.1 0.5 0.6

0.4 1.1

1.3

1.1 1.0

2.3

3.7

2.7

1.7

2013 2014 2015 2016

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1.1

0.8

1.0

1.4 1.2

0.8

1.1

1.5 1.3

0.8

1.2

1.5 1.3

0.9

1.2

1.5

Average 25th percentile Median 75th percentile

DKKm

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only companies for which CFO remuneration is disclosed for the entire period are included. This includes 15 companies.

Source: Deloitte analysis

Note: The samples of CEOs, CFOs and Other are not the same size, since we exclude companies that do not disclose individual remuneration for 2013-2016, leaving 20, 15 and 7 companies for CEOs, CFOs and Other, respectively. Further, we apply both CEOs for GN.

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

Figure: Composition of the total remuneration

Figure: Composition of the total remuneration:

CEO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

Base salary Pension Other Bonus LTI

Fixed salary Other Bonus LTI

Source: The results for US, UK and Continental Europe are from Conyen et al. (2011) and is based on information about remuneration in the annual financial reports.

The results for other pay in Denmark are from Bechmann (2011c) and is from an analysis of 39 listed companies in Denmark, with information based on the remunera-tion disclosed in the annual financial reports. Fixed salary, bonus and LTI for Denmark are based on an average for 114 listed companies (94 with incentive based payment and 20 without)

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

41% 41%

36%

35%

32%

39% 39%

28%

29%

27%

26%

2016 2015

2014 2013

29%

46%

55%

62%

6%

9%

13%

5%

20%

18%

21%

20%

46%

28%

12%

14%

US

UK

Continental Europe

Denmark

Base salery

Pension

0.00 2.00 4.00 6.00

DKKm 8.00

10.0 12.0 14.0 16.0

9.0

8.0

7.0

6.0

5.0

4.0 10.0

5.5 5.7 5.2

4.6

8.2

7.1 6.8

6.2

9.4 9.7

8.6 8.7

2016 2015

2014 2013

Source: The results for the US, the UK and Continental Europe are from Conyen et al. (2011) and are based on information on remuneration in annual reports. The results for other pay in Denmark are from Bechmann (2011c) and are from an analysis of 39 listed companies in Denmark, with information based on the remuneration disclosed in annual reports. “Fixed salary”, “Bonus” and “LTI” for Denmark are based on an average for 114 listed companies (94 with incentive-based payment and 20 without).

Source: Deloitte analysis

Note: The left graph represents the 26 companies that disclosed CEO salary in 2016, whereas the graph to the right represents the 20 companies that disclosed CEO salary in all 4 years. For GN Group, both CEOs have been included.

1 column represents 1 CEO

1 column represents 1 CFO

CFO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

DKKm

2016 2015

2014 2013

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

8.0 6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

3.9

3.3 3.7

3.9

4.8 4.6

4.3 4.5

6.0 6.1

5.3 5.4

Source: Deloitte analysis

Note: The left graph represents the 20 companies that disclosed CFO salary in 2016, whereas the graph to the right represents the 15 companies that disclosed CFO salary in all 4 years.

Other Executive Directors’ base salaries 2016 (left) and for percentiles for 2013 to 2016 (right)

All executive directors - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

DKKm

2016 2015

2014 2013

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Deloitte analysis

Note: The left graph represents the 13 companies that disclosed Other Executive Directors’ base salary in 2016, whereas the graph to the right represents the 7 companies that disclosed Other Executive Directors´ base salary in all 4 years.

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of the entire management group as a whole, have been included with the aggregated totals. Companies that do not disclose single person or executive management salary split are excluded. 30 companies are included in 2016.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of entire management group as a whole, have been included with the aggregated total. Companies that do not disclose single person or executive management salary split are excluded. In total, data from 25 companies has been included in 2016.

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

1 column represents 1 executive director

3.2 3.1 3.3

2.8

5.1 5.2

4.7 4.3

6.3 6.2 6.3

6.3

Pension contribution as a percentage of base salary in 2016

0%

40%

30%

35%

25%

15%

20%

10%

5%

CEO average: 12%

CFO average: 11%

One column represents one executive director

Companies only disclosing Executive Management as a group: 9%

Other Executive Director average: 15%

Bonus payout as a percentage of base salary in 2016

CEO average: 60%

CFO average: 49%

One column represents one executive director

Companies only disclosing Executive Management as a group: 43%

Other Executive Director average: 31%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CEOs - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

CFOs- Development in bonus payout as a percentage of base salary (left) and DKKm (right)

STI and LTI in percentage of total salary (total management)

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Note: Companies that do not display STI and LTI remuneration in 2016 are excluded, leaving 35 companies.

Vesting criteria for LTI programmes

Source: Deloitte analysis

Note: “Unknown” indicates that the company does not disclose if vesting criteria apply, whereas

“Undisclosed” indicates an LTI programme that has vesting criteria that are undisclosed.

Note: “Other financial KPIs” include both unspecified financial KPIs and other financial KPIs than those shown in the table. In the same way, “Other non-financial KPIs” include unspecified non-financial KPIs and other non-financial KPIs than those shown in the table.

Note: The numbers do not sum to 100%, as 1 LTI programme can have more than 1 vesting criterion.

Vesting and duration for LTI programmes

Source: Deloitte analysis.

Treasury shares and LTI units as a percentage of outstanding shares

Source: Deloitte analysis

Note: When outstanding shares are undisclosed, total shares are used as a proxy.

Note: All companies, which disclose the number of outstanding LTI units for at least 1 LTI programme, have been included, leaving 27 companies.

0%

20%

40%

60%

80%

100%

120%

140%

0% 20% 40% 60% 80% 100% 120% 140%

LTI

STI

57%

28%

28%

15%

15%

13%

17%

6%

11%

2%

6%

21%

-Other financial KPIs

Unknown EBITDA/EBIT Other non-financial KPIs TSR/share price None EPS Revenue Cash flow Individual Undisclosed Customer service KPIs

0 5 10 15 20 25 30 35 40

- 1 2 3 4 5 6 7 8 9

Number of programmes

Vesting period average : 2.9 Programme expiry average: 5.1

Treasury shares average: 2.9% LTI outstanding average: 1.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

CEO’s average: 65% Other executive board members average: 61%

2013 2014 2015 2016

5.0

2.9

4.4 5.5 5.8

3.2

5.0

6.6 5.8

3.6

5.2

6.8 6.1

4.0

5.1

7.1

Average 25th percentile Median 75th percentile

DKKm

2013 2014 2015 2016

PSU & RSU Options Matching shares Warrants

Incentive programme types

Source: Deloitte analysis

57%

17%

17%

9%

Remuneration in Danish Large Cap companies

13

Remuneration of executive directors 2013-2016

CEO remuneration 2013-2016

61%

58%

56%

56%

7%

6%

5%

6%

1%

1%

1%

1%

16%

18%

19%

19%

15%

17%

19%

18%

2013

2014

2015

2016

Base salary Pension Other Bonus LTI

Base salary Pension Other Bonus LTI

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only companies for which Executive Director remuneration is disclosed for the entire period are included. This includes 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only companies for which CEO remuneration is disclosed for the entire period are included.

Further, we apply both CEOs for GN. This includes 19 companies and 20 observations.

58%

57%

52%

53%

6%

6%

6%

5%

1%

1%

1%

1%

15%

17%

20%

20%

15%

19%

21%

21%

2013

2014

2015

2016

CFO remuneration 2013-2016

Variable pay 2013 – 2016

Base salary Pension Other Bonus LTI

CEO CFO Other

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

17% 15% 15%

25%

37% 40% 40%

47%

56%

67% 64%

2013 2014 2015 2016

1.7 2.5 3.0 3.7

4.0

6.1 6.2 6.0

9.1

10.3

13.1

10.8

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

6%

16%

6%

13%

30% 28%

43%

39%

47%

55%

74% 73%

2013 2014 2015 2016

0.4

0.8 0.6 1.2

1.6

2.4 2.4

2.9 3.7

3.3

5.3 5.4

2013 2014 2015 2016

25th percentile Median 75th percentile 25th percentile Median 75th percentile

21% 22%

15% 11%

37% 36%

46%

30%

47% 51%

67%

48%

2013 2014 2015 2016

0.9 1.0

0.7 0.6

1.3

1.6 1.4 1.6

2.3 2.4

3.2

2.8

2013 2014 2015 2016

25th percentile Median 75th percentile

Yearly LTI issuance as a percentage of outstanding shares

Source: Deloitte analysis

Note: Only active programmes are included.

Note: Only programmes with disclosed LTI issuance amount in all 4 years are included in the graph, leaving 29 programmes.

0.03%

0.05%

0.04%

0.02%

0.09%

0.17%

0.15%

0.13%

0.23%

0.42%

0.45%

0.35%

2016 2015

2014 2013

25th percentile Median 75th percentile 25th percentile Median 75th percentile

All executive directors - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

CEOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

3%

9%

15% 16%

25% 30% 32% 30%

55%

62%

67%

50%

2013 2014 2015 2016

0.9

2.1 2.9 3.2

3.7 3.6

6.4

5.7 6.7

11.5 12.0

10.1

2013 2014 2015 2016

25th percentile Median 75th percentile 4%

12% 17%

23% 25%

31% 33% 34%

67% 65%

78%

68%

2013 2014 2015 2016

25th percentile Median 75th percentile 0.2

0.8 1.1

2.0 1.0

2.0

2.5 2.7

3.8 4.2

6.0 5.7

2013 2014 2015 2016

CFOs - Development in yearly LTI allocations as a percentage of base salary (left) and DKKm (right)

Maximum allocation as a percentage of base salary

Board remuneration

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Source: Deloitte analysis

Note: Only companies that disclose person remuneration throughout the 4-year period are included, leaving 36 companies.

Remuneration of chairpersons

25th percentile Median 75th percentile 25th percentile Median 75th percentile

1% 10% 13% 12%

30% 35%

29%

18%

58%

91%

57%

26%

2013 2014 2015 2016

0.1 0.5 0.6

0.4 1.1

1.3

1.1 1.0

2.3

3.7

2.7

1.7

2013 2014 2015 2016

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

1.1

0.8

1.0

1.4 1.2

0.8

1.1

1.5 1.3

0.8

1.2

1.5 1.3

0.9

1.2

1.5

Average 25th percentile Median 75th percentile

DKKm

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only companies for which CFO remuneration is disclosed for the entire period are included. This includes 15 companies.

Source: Deloitte analysis

Note: The samples of CEOs, CFOs and Other are not the same size, since we exclude companies that do not disclose individual remuneration for 2013-2016, leaving 20, 15 and 7 companies for CEOs, CFOs and Other, respectively. Further, we apply both CEOs for GN.

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

Figure: Composition of the total remuneration

Figure: Composition of the total remuneration:

CEO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

Base salary Pension Other Bonus LTI

Fixed salary Other Bonus LTI

Source: The results for US, UK and Continental Europe are from Conyen et al. (2011) and is based on information about remuneration in the annual financial reports.

The results for other pay in Denmark are from Bechmann (2011c) and is from an analysis of 39 listed companies in Denmark, with information based on the remunera-tion disclosed in the annual financial reports. Fixed salary, bonus and LTI for Denmark are based on an average for 114 listed companies (94 with incentive based payment and 20 without)

59%

55%

54%

61%

6%

6%

6%

6%

1%

1%

1%

1%

18%

17%

19%

17%

17%

21%

20%

15%

2013

2014

2015

2016

41% 41%

36%

35%

32%

39% 39%

28%

29%

27%

26%

2016 2015

2014 2013

29%

46%

55%

62%

6%

9%

13%

5%

20%

18%

21%

20%

46%

28%

12%

14%

US

UK

Continental Europe

Denmark

Base salery

Pension

0.00 2.00 4.00 6.00

DKKm 8.00

10.0 12.0 14.0 16.0

9.0

8.0

7.0

6.0

5.0

4.0 10.0

5.5 5.7 5.2

4.6

8.2

7.1 6.8

6.2

9.4 9.7

8.6 8.7

2016 2015

2014 2013

Source: The results for the US, the UK and Continental Europe are from Conyen et al. (2011) and are based on information on remuneration in annual reports. The results for other pay in Denmark are from Bechmann (2011c) and are from an analysis of 39 listed companies in Denmark, with information based on the remuneration disclosed in annual reports. “Fixed salary”, “Bonus” and “LTI” for Denmark are based on an average for 114 listed companies (94 with incentive-based payment and 20 without).

Source: Deloitte analysis

Note: The left graph represents the 26 companies that disclosed CEO salary in 2016, whereas the graph to the right represents the 20 companies that disclosed CEO salary in all 4 years. For GN Group, both CEOs have been included.

1 column represents 1 CEO

1 column represents 1 CFO

CFO base salaries 2016 (left) and percentiles for 2013 to 2016 (right)

DKKm

2016 2015

2014 2013

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

8.0 6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

3.9

3.3 3.7

3.9

4.8 4.6

4.3 4.5

6.0 6.1

5.3 5.4

Source: Deloitte analysis

Note: The left graph represents the 20 companies that disclosed CFO salary in 2016, whereas the graph to the right represents the 15 companies that disclosed CFO salary in all 4 years.

Other Executive Directors’ base salaries 2016 (left) and for percentiles for 2013 to 2016 (right)

All executive directors - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

DKKm

2016 2015

2014 2013

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Source: Deloitte analysis

Note: The left graph represents the 13 companies that disclosed Other Executive Directors’ base salary in 2016, whereas the graph to the right represents the 7 companies that disclosed Other Executive Directors´ base salary in all 4 years.

Source: Deloitte analysis

Note: Companies that do not disclose executive management salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 28 companies.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of the entire management group as a whole, have been included with the aggregated totals. Companies that do not disclose single person or executive management salary split are excluded. 30 companies are included in 2016.

Source: Deloitte analysis

Note: All executive directors with disclosed salary specification have been included as a separate category. Companies, which only disclose salary specification of entire management group as a whole, have been included with the aggregated total. Companies that do not disclose single person or executive management salary split are excluded. In total, data from 25 companies has been included in 2016.

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

1 column represents 1 executive director

3.3 3.2 3.1

2.8

5.1 5.2

4.7 4.3

6.3 6.2 6.3

6.3

Pension contribution as a percentage of base salary in 2016

0%

40%

30%

35%

25%

15%

20%

10%

5%

CEO average: 12%

CFO average: 11%

One column represents one executive director

Companies only disclosing Executive Management as a group: 9%

Other Executive Director average: 15%

Bonus payout as a percentage of base salary in 2016

CEO average: 60%

CFO average: 49%

One column represents one executive director

Companies only disclosing Executive Management as a group: 43%

Other Executive Director average: 31%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

CEOs - Development in bonus payout as a percentage of base salary (left) and DKKm (right)

Source: Deloitte analysis

Note: Companies that do not disclose CEO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 20 companies.

CFOs- Development in bonus payout as a percentage of base salary (left) and DKKm (right)

STI and LTI in percentage of total salary (total management)

Source: Deloitte analysis

Note: Companies that do not disclose CFO salary split are excluded. Only observations that are disclosed for the entire period are included, leaving 15 companies.

Source: Deloitte analysis

Note: Companies that do not display STI and LTI remuneration in 2016 are excluded, leaving 35 companies.

Vesting criteria for LTI programmes

Source: Deloitte analysis

Note: “Unknown” indicates that the company does not disclose if vesting criteria apply, whereas

“Undisclosed” indicates an LTI programme that has vesting criteria that are undisclosed.

Note: “Other financial KPIs” include both unspecified financial KPIs and other financial KPIs than those shown in the table. In the same way, “Other non-financial KPIs” include unspecified non-financial KPIs and other non-financial KPIs than those shown in the table.

Note: The numbers do not sum to 100%, as 1 LTI programme can have more than 1 vesting criterion.

Vesting and duration for LTI programmes

Source: Deloitte analysis.

Treasury shares and LTI units as a percentage of outstanding shares

Source: Deloitte analysis

Note: When outstanding shares are undisclosed, total shares are used as a proxy.

Note: All companies, which disclose the number of outstanding LTI units for at least 1 LTI programme, have been included, leaving 27 companies.

0%

20%

40%

60%

80%

100%

120%

140%

0% 20% 40% 60% 80% 100% 120% 140%

LTI

STI

57%

28%

28%

15%

15%

13%

17%

6%

11%

2%

6%

21%

-Other financial KPIs

Unknown EBITDA/EBIT Other non-financial KPIs TSR/share price None EPS Revenue Cash flow Individual Undisclosed Customer service KPIs

0 5 10 15 20 25 30 35 40

- 1 2 3 4 5 6 7 8 9

Number of programmes

Vesting period average : 2.9 Programme expiry average: 5.1

Treasury shares average: 2.9% LTI outstanding average: 1.5%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

CEO’s average: 65% Other executive board members average: 61%

2013 2014 2015 2016

5.0

2.9

4.4 5.5 5.8

3.2

5.0

6.6 5.8

3.6

5.2

6.8 6.1

4.0

5.1

7.1

Average 25th percentile Median 75th percentile

DKKm

PSU & RSU Options Matching shares Warrants

Incentive programme types

Source: Deloitte analysis

57%

17%

17%

9%

By comparing the development of variable pay over time for CEOs, CFOs and Other Executive Directors we observe that CFOs and Other Executive Directors receive a lower relative amount of their total remuneration compared to CEOs. Interestingly, we observe that CFOs historically have received a higher variable pay compared to CEOs, but CEOs have received higher variable pay since 2015. In 2016 there is a significant difference for variable pay to CEOs compared to CFOs and Other Executive Directors, where CEOs receive a variable pay of 41% compared to 32% for CFOs and 28% for Other Executive Directors.

Interestingly we observe that

CFO’s historically received a

higher variable pay compared to

CEO’s, but since 2015 the CEO’s

receive higher variable pay.

In document Kan Det Betale Sig? (Sider 99-124)