Ørsted attaches importance to the members of its Board of Directors having extensive knowledge and experience from management positions in major Danish and foreign companies covering a wide range of fields of activity, including fields directly related to the company's business areas.
The Board of Directors has prepared a list of the competencies that should be represented on Ørsted's Board of Directors. You can find the competencies overview via the link to the right.
Audit & Risk Committee
The Board of Directors has formed an Audit & Risk Committee.
Members and duties
Benny D. Loft (Chairman), Peter Korsholm and Lene Skole are members of the Audit and Risk Committee. Between them, the members of our Audit and Risk Committee possess the relevant financial, accounting, audit and sector skills.
The committee assists the Board of Directors in overseeing the financial and non-financial reporting process, financial and business-related risks, compliance with statutory and other requirements from public authorities and the internal control environment. Moreover,
the committee approves the framework for the work of the company's external and internal auditors, evaluates the external auditors' independence and qualifications and monitors the company's whistleblower scheme.
You can download the terms of reference of the Audit & Risk Committee via the link to the right.
Meetings in 2016
In 2016, the Audit & Risk Committee held 7 meetings.
Special tasks in 2016
New rules governing statutory audits were implemented in Denmark in 2016. As a result, the committee's terms of reference have been updated to reflect the changed responsibilities. The committee has also approved a new policy for the use of a group auditor. Among other things, it introduces a cap on fees charged by the group auditor for the provision of non-audit services of 100% of the group fee as well as a preliminary approval of non-audit services. The committee may approve the exceeding of the limit.
Important tasks of the Audit and Risk Committee in 2016:
Audit and accounting
- Implementation of new auditor's report on consolidated financial statements
- Review of the presentation of Oil & Gas as discontinued operations
- Assessment of need for impairment of oil and gas assets
- Review of accounting treatment of the new share programme for senior executives
- Review of provisions regarding the termination of the contract concerning the Hejre platform
- Implementation of new structure in quarterly reports, annual report and sustainability report following IPO
- Review of expectations regarding market prices, foreign exchange rates, discount rates and risk-free interest.
- Review of IT security in operational and administrative areas as well as cyber defence
- Review of the impact of the UK's vote to leave the EU (Brexit)
- Review of cash reserves, repayment of bank loans and redemption of bonds
- Approval of new mandate for managing interest rate and inflation risks.
The Board of Directors has formed a Remuneration Committee.
Thomas Thune Andersen (Chairman), Lene Skole and Pia Gjellerup are members of the Remuneration Committee.
The committee assists the Board of Directors in preparing and implementing the remuneration policy. The committee assesses and prepares recommendations on Group Executive Management's salary adjustments, bonuses, the application of retention schemes for key personnel, the use of one-off payments and the introduction of new compensatory elements.
You can download the terms of reference of the Remuneration Committee via the link to the right.
In 2016, the Remuneration Committee held two meetings. At the meetings, the Remuneration Committee discussed, among other things, the introduction of a new share programme and a number of retention schemes.