Remuneration

Duroc’s principles for remuneration to the CEO and other senior executives are proposed by the Board and regulate fixed annual salary, variable remuneration, pensions and other benefits. These principles shall then be adopted by the AGM. Duroc’s Board of Directors has chosen not to appoint a special remuneration committee, but considers it appropriate that the entire board fulfills the duties of the Remuneration Committee.

In short, the Annual General Meeting 2014 established the following principles for remuneration to senior executives. The company will strive to offer compensation that is in accordance with market standards to its senior executives. All senior executives have fixed annual salary, and in some cases variable remuneration. The basis for the variable remuneration is quantitative measurements for accomplishments. The variable remuneration is maximized to an amount equal to eight monthly salaries.

No senior executives have options or convertibles issued by the company. The notice period is maximum six months with no severance pay thereafter. Otherwise, the company’s management shall enjoy customary non-monetary benefits.

The Board shall have the right to waive the guidelines if there are specific reasons for this in an individual case.