Arla Foods Consolidated Annual Report 2021
113
Arla Foods Consolidated Annual Report 2021 / Consolidated Financial Statements / Notes
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5.4 MANAGEMENT REMUNERATION AND
TRANSACTIONS WITH RELATED PARTIES
Contents
III
REMUNERATION PAID TO MANAGEMENT
The remuneration to the 18 registered members of
the Board of Directors (BOD) is assessed and adjusted
on a bi-annual basis and approved by the Board of
Representatives. The BoD's remuneration was most
recently adjusted in 2019. Principles applied to the
remuneration of the BoD are described on page 47.
Members of the Board are paid for milk supplies to Arla
Foods amba, in accordance with the same terms as
apply to the other owners. Similarly, individual capital
instruments are issued to the BoD on the same terms as
apply to other owners.
The Executive Board consists of Chief Executive
Officer Peder Tuborgh and Chief Commercial Officer,
Europe, Peter Giørtz-Carlsen. Principles applied for the
remuneration of the Executive Board are described on
page 47.
Table 5.4.b Transactions with the Board of Directors
(EURM)
2021
2020
Purchase of raw milk
Supplementary payment regarding previous years
27.4
26.5
1.4
0.8
28.8
27.3
Total
Unsettled milk deliveries recognised in trade and other payables
Individual capital instruments
Total
Refer to Note 3.3 for information on transactions with associates and joint ventures.
722
2.6
2.9
5.5
695
1.5
2.6
4.1
Table 5.4.a Management remuneration
(EURM)
Board of Directors
Wages, salaries and remuneration
Total
Executive Board
Fixed compensation
Pension
Short-term variable incentives
Long-term variable incentives
Total
2021
2020
1.3
ين من
1.3
1.3
1.3
2.4
2.4
0.3
0.3
0.8
1.4
2.9
4.7
6.4
8.8
The above table includes accrued amounts related to the respective reporting period. The amounts are based on
reported key figures together with estimates of performance compared to peers, which means that the final future
payout may differ.
5.5 CONTRACTUAL COMMITMENTS,
CONTINGENT ASSETS AND LIABILITIES
CONTRACTUAL OBLIGATIONS AND COMMITMENTS
Arla's contractual obligations and commitments
amounted to EUR 370 million compared to
EUR 364 million last year. The development was
caused by increased surety and guarantee obligations
and less commitments relating to property, plant and
equipment purchase agreements.
Contractual obligations and commitments consisted of
surety and guarantee obligations, IT licences, short-term
and low-value leases and commitments relating to
property, plant and equipment purchase agreements.
The group provided security upon property for mortgage
debt based on the Danish Mortgage Act with a nominal
value of EUR 1,040 million, compared to EUR 1,061
million last year.
The group is party to a small number of lawsuits,
disputes and other claims. The management assesses
that the outcome of these will not have a material
impact on the group's financial position beyond
what has already been recognised in the financial
statements.
5.6 SUBSEQUENT EVENTS AFTER
THE BALANCE SHEET DATE
No subsequent events with a material impact on the financial statements occurred after the balance sheet date.View entire presentation