Note 4 - Management remuneration
Executive Management
2011 2010
Remuneration excluding stock-based payment         DKK million DKK million  
Salaries 22  19 
Cash bonuses
Pensions          
Remuneration excluding stock-based payment, total 35  32 
The remuneration comprises a fixed base salary (base salary and pension contribution), a cash bonus, and a stock-based program. No member of Executive Management has a fixed base salary exceeding DKK 6 million. The variable part of the total remuneration (cash bonus and stock-based program) is relatively large compared to the fixed base salary and is dependent on achievement of individual targets and the company’s targets for financial, social, and environmental results. The maximum cash bonus is equivalent to 5 months’ fixed base salary. General guidelines for remuneration of Executive Management are approved by the Annual Shareholders’ Meeting, and more detailed information is available at www.novozymes.com.
 
Members of Executive Management have contracts of employment containing standard conditions for executive officers of Danish listed companies, including the periods of notice that both parties are required to give and competition clauses. If the executive officer's contract of employment is terminated by the company without there having been misconduct on the part of the executive officer, the executive officer has the right to compensation, which, depending on the circumstances, may amount to a maximum of 3 years' base salary and pension contributions.

Stock options Shares
Options at Additions Exercised Options at Market
January 1, during during Dec. 31, value in
Stock options and shares of stock 2011*  the year  the year 2011 DKK million Number
Steen Riisgaard 788,110    -  (78,000) 710,110  61.9  58,575 
Per Falholt 474,005    -  (163,670) 310,335  28.8    - 
Benny D. Loft 480,905    -  (170,570) 310,335  28.8  2,260 
Peder Holk Nielsen 518,405    -  (208,070) 310,335  28.8    - 
Thomas Nagy 328,135    -    -  328,135  30.6  500 
Thomas Videbæk 328,135    -  (25,270) 302,865  28.1    - 
Stock options and shares of stock, total 2,917,695    - (645,580) 2,272,115  207  61,335 
* Adjustment in balance at beginning of year due to limitation of previous year's stock option program.
     
A new long-term stock-based incentive program for Executive Management was established in 2011. The incentive program is a 3-year stock-based program and covers the period 2011–2013, with shares to be released in January 2014. The program is based on achievement of cumulative economic profit in the 3-year period. Using economic profit as the target for the program will ensure that Novozymes’ Executive Management focuses on delivering on the company’s long-term expectations of annual sales growth of more than 10% in the period, an EBIT margin of more than 20% in the period, and a ROIC that is higher than 22% at the end of the period. A total of 699,300 shares have been granted. This is based on the expected economic profit and dividend and will be adjusted on an annual basis. The fair value on grant date was DKK 108 million, which will be expensed over the 3-year period, assuming that the cumulated economic profit target will be met. This assumption is unchanged, and thus DKK 36 million was expensed in 2011. A further DKK 15 million (2010: DKK 20 million) has been recognized regarding stock option programs from previous years that have not yet fully vested.

Board of Directors and Audit Committee
Board of Audit 2011 Board of Audit 2010
Remuneration   Directors Committee DKK thousand Directors Committee DKK thousand  
Henrik Gürtler 1,250    -  1,250  833    -  833 
Kurt Anker Nielsen 833  417  1,250  500  333  833 
Paul Petter Aas 417    -  417  333    -  333 
Jerker Hartwall* 69  35  104  333  167  500 
Søren Henrik Jepsen 417    -  417  333    -  333 
Lars Bo Køppler** 417    -  417  28    -  28 
Ulla Morin 417    -  417  333    -  333 
Michael Munksø**   -   -    - 305    -  305 
Lena Olving* 347  174  521    -   -    -
Agnete Raaschou-Nielsen* 347  174  521    -   -    -
Jørgen Buhl Rasmussen* 347    -  347    -   -    -
Walther Thygesen* 69  35  104  333  167  500 
Mathias Uhlén   417    -  417  333    -  333   
Remuneration, total 5,347  835  6,182  3,664  667  4,331 
* Jerker Hartwall and Walter Thygesen left the Board of Directors in 2011. Agnete Raaschou-Nielsen, Lena Olving, and Jørgen Buhl Rasmussen joined the Board on March 1, 2011.     
** Michael Munksø left the Board of Directors and was replaced by Lars Bo Køppler as of December 1, 2010.
 
Directors' remuneration does not include minor social security contributions paid by Novozymes.
 

Shares at Additions Sold Shares at Market
January 1, during during Dec. 31, value in
Shares of stock     2011  the year  the year 2011 DKK million
Henrik Gürtler   -    -    -    -    - 
Kurt Anker Nielsen 49,845    -    -  49,845  8.8 
Paul Petter Aas   -    -    -    -    - 
Søren Henrik Jepsen 2,200  130  (2,050) 280    - 
Lars Bo Køppler   -    -    -    -    - 
Ulla Morin 2,080    -    -  2,080  0.4 
Lena Olving   -    -    -    -    - 
Agnete Raaschou-Nielsen   -  430    -  430  0.1 
Jørgen Buhl Rasmussen   -    -    -    -    - 
Mathias Uhlén       -    -    -    -    - 
Shares of stock, total 54,125  560  (2,050) 52,635  9.3 
The employee-elected board members also hold stock options in Novozymes A/S, granted in connection with stock option allocations in previous years covering all employees at Novozymes on the relevant dates.