En analyse af Carlsbergs lønudbetaling til ledelsen i forhold til virksomhedens resultater

Victor Bundgaard Nielsen

Student thesis: Master thesis


This thesis purpose is to clarify if there is a correlation between a company’s size, the salary for the CEO and the company’s performance.
I analyzed the CEO of Carlsberg’s salary compared with the company’s performance. In this thesis there has been defined some criteria for a well-designed Incentive plan, which will be used as a framework for what to categories as a well-designed incentive plan.
Carlsberg has a well-designed incentive plan, the CEO has a great congruence with the owner because of the performance measures in the incentive plan all gives more value to the owners. The incentive plan is also easily to understand and communicate which makes it easier for the CEO to understand where the target is and what to do to get there. The CEO also have the ability to control the performance so they can reach the target, this is essential for keeping the CEO motivated. The only issue Carlsberg has in their incentive plan is that they use performance measures adjusted for Special Items which gives the CEO the opportunity to allocate costs in special items which may leads to the CEO reaches his targets.
With knowledge of Carlsberg has a well-designed Incentive Plan Is it possible to compare the payout for the CEO to other big companies. Carlsberg is one of the biggest companies in Denmark and the also pays one of the biggest amounts to their CEO. The salary consists a base salary, annual bonus and long-term bonus which is paid in shares. Carlsberg pays a base salary which matches most of the companies who has the same market value as them, but Carlsberg pays a higher bonus than the other, but this matches the share price because Carlsberg’s share price has been increasing since mid 2015. A.P. Møller Mærsk pays the highest short-term salary but their share price only increased with 13% against Carlsberg’s 46% increase in 2019.
If you compare the salary for Carlsberg’s CEO with other breweries does it show a clear stair. Carlsberg compared with Royal Unibrew, the second largest brewery in Denmark, shows that Royal Unibrew’s pays the smallest payout for their CEO and is also the company with the smallest increase in the market value and also gets the lowest increase in market value per Dkk. they payout. Then there’s Carlsberg, who is the biggest brewery in Denmark, they pay their CEO a bit more than Royal Unibrew but do also get a higher increase market value and higher increase in market value per Dkk. they payout. Then there is Heineken, the second largest brewery in the world, they pay more than both Carlsberg and Royal Unibrew, but do also get the highest increase in market value and increase in market value per Dkk. they payout. This shows that there is link between how big the company is, the amount of salary and what, you as a share owner gets of it.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2020
Number of pages65