Arla Foods Annual Report 2020
Management Review
Our Strategy Our Brands and Commercial Segments Our Responsibility Our Governance
Our Performance Review Our Consolidated Financial Statements Our Consolidated Environmental, Social and Governance Data
Other areas
5.3 MANAGEMENT REMUNERATION AND
TRANSACTIONS WITH RELATED PARTIES
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 latest
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 terms for the other owners.
Similarly, individual capital instruments are issued to the
BoD on the same terms as 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 5.3.b Transactions with the Board of Directors
(EURM)
Purchase of raw milk
Supplementary payment regarding previous years
Total
Unsettled milk deliveries in trade and other payables
Individual capital instruments
Total
Table 5.3.a Management remuneration
(EURM)
2020
2019
Refer to note 3.3 for information on transactions with associates and joint ventures.
Other areas
5.4 CONTRACTUAL COMMITMENTS,
CONTINGENT ASSETS AND LIABILITIES
2020
2019
26.5
26.0
0.8
2.1
27.3
28.1
1.5
1.5
2.6
2.9
4.2
4.4
Board of Directors
Wages, salaries and remuneration
Total
Executive Board
Fixed compensation
Pension
Short-term variable incentives
Long-term variable incentives
Total
1.3
1.3
1.3
1.3
2.4
2.3
0.3
0.3
1.0
0.5
0.9
0.4
4.6
3.5
The above table includes amount paid during the respective reporting period. The Executive Board remuneration
package includes incentive plans as described on page 47. For 2020 the accrued amount was EUR 6.1 million
(EUR 3.5 million last year). The amount was based on reported key figures together with estimates on performance
compared to peers and consequently the final future payout may differ.
Contractual obligations and commitments
Arla's contractual obligations and commitments
amounted to EUR 364 million compared to EUR 254
million last year. Increased obligations on IT contracts,
increased guarantee obligations and increased
commitments on CAPEX purchases were the main
reasons for the development.
Contractual commitments consisted of IT licenses, short
term and low value lease contracts and agreements to
purchase property, plant and equipment.
Other areas
The group provided security in property for mortgage
debt based on the Danish Mortgage Act with a nominal
value of EUR 1,061 million, compared to EUR 966
million last year.
The group is party to a small number of lawsuits,
disputes and other claims. Management believes that
the outcome of these will not have a material impact on
the group's financial position beyond what is already
recognised in the financial statements.
5.5 SUBSEQUENT EVENTS AFTER
THE BALANCE SHEET DATE
114 ARLA FOODS ANNUAL REPORT 2020
No subsequent events with a material impact on the financial statements occurred after the balance sheet date.View entire presentation