Remuneration to Management, employees and Board of Directors“A major current topic of discussion is the question of remuneration and salaries to Management, employees and Board of Directors by means of share-based incentive schemes. At NKT we believe that such schemes are in everyone’s interest provided they have a balanced composition.
In the model we work with at NKT our newly issued share options or warrants only attain value when exercised, provided shareholders have previously enjoyed a 9% per year return in the form of dividend and growth in the NKT share price.
NKT’s scheme is in no way a ‘grab bag’,” stressed the Chairman, and referred to the descriptions of the scheme contained in the annual report. The Chairman also described the background to the issue of share options to the Board of Directors of NKT Holding.
NKT's Corporate Governance
“At NKT we are committed to matching the demands of the world of which we are part. Our existence depends on our doing so successfully.
Our ambition is to ensure that our view of ourselves as a credible, open and quality-conscious business partner is shared by our various stakeholders,” said the Chairman, who went on to describe corporate governance and the way it is practised at NKT.
“With the launch of a totally new and very extensive NKT website, the introduction of the on-line transmissions of the briefing meetings we hold after publishing our accounts, and our electronic news service, we believe we have demonstrated our desire for openness,” said the Chairman.
Prospects for 2003
“Before turning to prospects for the present year I would mention that only a very few of our companies were not confronted with the requirement for capacity adjustments in 2002. In that connection I would like to wish everyone who had to leave us the very best of luck in the future and in their endeavours to find new work. I would also like to thank all employees for their efforts in 2002.”
The Chairman concluded his speech as follows: “The NKT Group as a whole will post a net profit after tax and minority interests of between 20 and 50 mDKK in 2003, along with a positive cash flow of around 100 mDKK after restructuring provisions. 1Q/2003 developments do not give us cause to revise these expectations.”
The full text of the Chairman’s report can be found on www.nkt.dk (in Danish only).
