ANNUAL REPORT 2021
LUNDBECK
ANNUAL REPORT 2021
= CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES 13-14
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13 RETIREMENT BENEFIT OBLIGATIONS AND SIMILAR OBLIGATIONS - CONTINUED
Net expense recognized in profit or loss
Pension expenses
Administration fees
Total
Finance costs
Amount recognized in other comprehensive income
Actuarial (gains)/losses
Realized return on plan assets
2021
DKKm
2020
DKKm
7
7
2
2
1
1
10
10
2021
DKKm
1
2021
DKKm
2020
DKKm
1
2020
DKKm
(2)
17
The benefit under unfunded defined benefit plans is paid directly by the Group. In some countries, the future
contribution to funded defined benefit plans depends on the development in salaries, administrative fees and
regular premiums, and in other countries on the surplus/deficit according to local requirements. The weighted
average duration of the obligation is 15 years (15 years in 2020). The expected contribution to defined benefit
plans for 2022 is DKK 12 million (DKK 14 million for 2021).
Other obligations of a retirement benefit nature
In 2021, an obligation of DKK 35 million (DKK 35 million in 2020) was recognized to cover other obligations
of a retirement benefit nature, which primarily include post-employment benefits in a number of subsidiaries.
These benefit payments are conditional upon specified requirements being met.
14 INCENTIVE PROGRAMS
In order to attract, retain and motivate key employees and align their interests with those of its shareholders,
Lundbeck has established a number of long-term incentive programs. Lundbeck uses equity- and cash-
settled programs.
Equity-settled programs
In 2021, equity-settled incentive programs consisted of restricted share units (RSUs).
In February 2021 (February 2020), Lundbeck established an RSU programme for Lundbeck's registered
Executive Management and key employees, as part of Lundbeck's recurring long-term incentive programme.
Four of the members of the registered Executive Management (four members for the 2020 program) and
135 key employees employed with H. Lundbeck A/S or a Lundbeck subsidiary were granted RSUs (131 key
employees for the 2020 program). The participants were selected on the basis of job level. All the RSUs vest
three years after grant (for the 2020 program will vest three years after grant). Vesting is subject to the Board
of Directors' decision on vesting, to Lundbeck achieving certain strategic and financial targets specified by
the Board of Directors and to continuing employment with the Group during the vesting period. The fair value
of the RSUS has been calculated on the basis of a share price of DKK 250.97 (DKK 274.56 for the 2020
program) reduced by an expected dividend yield of 2.00% p.a. The fair value at the time of the grant was
DKK 236.21 per RSU (DKK 258.41 for the 2020 program).
The RSUs granted to the registered Executive Management and key employees in 2017 vested in 2021. The
RSUS granted to the registered Executive Management and key employees in 2016 vested in 2020.
RSU programs
Number of persons included in the program
Total number of RSUs granted
2021
139
2020
2019
160,273
135
139,119
139
127,899
2018
133
107,321
2017
127
131,516
Number of RSUs granted to the registered
Executive Management
Vesting date
Fair value at the date of grant, DKK
34,781
01.02.24
236.21
29,923
01.02.23
258.41
28,128
01.02.22
269.71
24,783
01.02.22
291.03
47,911
01.02.21
268.65
At 31 December 2021, no warrants were outstanding (no warrants in 2020). No new warrant programs were
granted in 2021. In 2020, all remaining warrants granted (from the 2012 program) were exercised or expired
and the weighted average share price of the warrants exercised during 2020 was DKK 284.52.View entire presentation