Investor Presentaiton
59
A.P. Moller-Maersk Annual Report 2020
Directors' Report
Governance
Remuneration
=1
Remuneration
2020 has been a strong year for A.P. Moller - Maersk despite the
ongoing impacts of the COVID-19 pandemic. The remuneration of the
Executive Board members for the financial year 2020 reflects a solid
year with strong financial results and a satisfying progress towards the
strategic transformation, whilst the remuneration to the members of
the Board of Directors remains unchanged from the previous year.
The following sections set out key elements of the Remuneration Policy
('Policy'), and the total remuneration awarded to the members of Board
of Directors and the Executive Board for 2020.
Remuneration policy at a glance
The Policy supports the business needs by enabling
an appropriate total remuneration package that has
a clear link to business strategy and aligns with share-
holder interests.
2016-2020 Remuneration
Remuneration awarded (USD million)
Board of Directors
Fixed annual fee
The current Policy applies to members of the
Executive Board and the Board of Directors and
was adopted at the company's Annual General
Meeting in 2020.
Board of Directors
The members of the Board of Directors receive a
fixed annual fee which is differentiated based on
the role:
The Chairman receives a fixed amount inclusive of
committee work and all other additional duties
Ordinary Board members receive a fixed amount
and the Vice Chairman receives fixed multiples
thereof.
2020
2019
2018
2017
2016
3
3
3
3
3
3
3
3
3
3
Board of Directors members serving on the Board
committees or performing ad hoc work beyond
the normal responsibilities receive an additional
fee. This does not apply to the Chairman where the
fixed annual fee is all inclusive.
Executive Board
The remuneration of the Executive Board mem-
bers consists of a fixed base salary, which is inclu-
sive of company pension contribution and car,
short-term incentive as well as the long-term
incentive components.
The remuneration structure is intended to drive a
'reward for performance' culture by aligning indi-
vidual reward to company performance and share-
holder value creation. The individual remuneration
level is set and reviewed based on peer companies
of similar size and complexity to ensure they
remain comparable and fit for the business.
Total remuneration 2020
The table shows the total remuneration awarded
to members of the Board of Directors and the
Executive Board in aggregate from 2016 to 2020,
as set out in note 2 of the consolidated financial
statements.
The objectives of the Policy are to:
.
•
Ensure appropriate total remuneration: The remu-
neration design and decisions are guided by market
practice in Europe, reflected in the remuneration
components offered and the total remuneration
value provided.
Link to business strategy: The Policy supports the
business plan and the need for executive leaders to
focus on delivering an on-going progress to achieve
the company's strategic goals, reflected in a combi-
nation of short and long-term incentive components.
Align with shareholder interest: The Policy is designed
to support the delivery of strong financial and oper-
ational results over time, which ultimately grow
shareholder value.
Total
Executive Board
Fixed base salary
Short-term cash incentive
Long-term share-based incentives
Remuneration in connection with redundancy,
resignations and release from duty to work
Lump sum retirement payment
Total
8 6
10
10
10
8
13
5
5
2
2
2
1
1
1
-2
16
6
4
22
22
22
-1
20
20
11
34
Further information regarding the share-based
payments is detailed in note 11 of the consolidated
financial statements as calculated under IFRS2.
This is different in both reporting and methodol-
ogy in the company's Remuneration Report 2020
which is available at the company's website on:
https://investor.maersk.com/remuneration.View entire presentation