The result of this, the 23rd consecutive analysis concerning "Profiles of Board and management in Scandinavian Companies" were presented by Editor in Chief, Carsten Steno (The Danish Business Daily) at the annual Board Conference held the Confederation of Danish Industries in Copenhagen on October 25, 2001. The analysis was conducted among 326 top level executives from a wide range of international companies and sectors. The following is an excerpt of the presentation:

The global perspective

The majority of the CEOs maintain their key operational activities in Denmark. A fifth have headquarters in other countries. Only 1% has contemplated relocating their headquarters, while 6% are considering a local outside Denmark. As to production and manufacturing, 21% is considering relocating.

The mean value of Danish companies' industrial output in foreign countries is 57%, showing an estimated increase over the next three years to 66%. The foreign based R&D share is currently at 25% with a predicated increase over the next three years to 29%.

The three year outlook for production and manufacturing indicate an increase within the industrial sector from 36% to 45%, while trade is expected to grow from 43% to 48%. The companies are truly operating on an international platform: more than half already use English as the working language in the companies which is expected to increase to 67%.

Shareholder - stakeholder - ethics

In respect to 'Shareholder value' the companies' on-sight-investment strategies show a marked increase from 23% in 2000 to 38% in 2001. As to 'stakeholder value' almost half of the CEOs (44%) are considering this to be 'more important' or 'significantly more important' than two years ago. When asked about foundation ownership, half of the CEOs maintain a neutral stance, while 28% are directly negative, partly because it might reduce the possibilities of further corporate development while distorting competition.

Relations with the Board

About a third of the CEOs think that their Boards could be better - a stark change from previous. they also think that the poorly prepared Board members are on the increase, while the 'well prepared' Directors are decreasing, although with a faint tendency. More companies in Scandinavia insure their Directors to prevent damages in case of possible liability suits against their Board Members - a strong acknowledgement of the responsibilities that face Board Directors. the analysis shows that less than a fourth of the companies make competency profiles covering duties and responsibilities for their Board members.

The typical number of Board meetings ranges between 4 and 7 - averaging 6.5.

How are the CEOs rewarded for their troubles?

The fixed salaries of CEOs in Scandinavian companies are continuing their increase. Few now make less than DKK 700.000, while about a third make more than 2 million DKK - against one fourth last year. The variable income of the CEOs continues its climb; more than half make more than DKK 200.000, and there is an increase from 12 to 17% in respect to variable income exceeding DKK 1 million. About half also carry supplementary income from other sources while maintaining some from of ownership of their companies - mainly smaller stock portions.

'Golden handshakes' are up. When vacating their positions, CEOs now receive an additional 54% of their annual salary, against 45% in 2000 and 37% in 1997. 'Golden parachutes' (economic compensation if the CEOs don't wish to continue under new ownership), is now up from 31% last year to 41% in 2000. A massive 76% maintain a 'once-and-for-all' compensation package equal to 1 year's salary or more.

Insider Trade and public records

The executives awareness concerning 'insider trade' issues have increased considerably. The majority thinks that a centralized register should be established, only half, however, think it should be made publicly available. The opinions vary when asked about the effectiveness of a central system. About a fourth think it will limit insider trade significantly, while half think that it will only have a limited effect. Most, however, believe that confidential information about Danish public companies is being treated too casually. 8% of the executives in companies with turnovers exceeding DKK 1 billion suspect stock trade related to their companies based on insider knowledge.

Competitive limitations and cartels

The majority thinks that the recent verdicts in Denmark concerning competitive limitations and cartels are fair. About a fourth, however, think they are too tough, while only 7% think they aren't tough enough. The majority also thinks that the lightening of competitive clauses and their current effectuation is adequate. About half find that other Danish business leaders are fully aware of the boundaries of illegal deals. Less than half of the surveyed CEOs think that other executives are aware of these issues to some extent. But when the same question is asked the surveyed executives themselves, the awareness increases considerably - two thirds believe that they do indeed grasp the boundaries of illegal deals. They don't, however, fear that the new competitive clauses will affect deals within their sectors, nor do they think that they - unwarily - have breached any.