Corporate governance
Rockwool International A/S’ corporate governance charter consists of a framework of principles and rules. This framework includes the Articles of Association, Business Procedure for the Board of Directors, and Management Instructions for the Management Board, and is in accordance with the more general values, Principles of Leadership and business rules used in the Rockwool Group.
Pursuant to the provisions of the Danish Companies Act and Rockwool International’s Articles of Association, the supervision and management of Rockwool International is divided among the Group Management, the Board of Directors (the Board) and the General Meeting of shareholders.
Group Management
Group Management is responsible for the day-to-day management of the company. The team consists of the CEO and six other executives - four Danes, one Dutchman, one German and one Frenchman. Two executives including the CEO are registered as the Management Board according to Danish law.
The Board appoints Group Management members. The chairmanship – consisting of the chairman and one or two deputy chairmen, together with the CEO – identifies successors to executives, who are then presented to the Board for approval.
The Board
The Board decides on matters of substantial importance for the Group’s activities. These include decisions on strategic guidelines, approval of periodic plans, and decisions on major investments and divestments.
An important part of the Board’s work is monitoring the risk factors associated with the company’s operations. The Boards and supervisory committees of all Rockwool companies are charged with gaining an overview of the main risks associated with their activities, which once a year is consolidated into a Group risk profile for regular evaluation.
Members elected to the Board by the General Meeting are elected for a period of one year.
When members are elected to the Board, emphasis is given to candidates’ ability to contribute to the Group’s development. The members of the Board appointed by the General Meeting currently comprise six persons - five Danes and one Dutchman. Board members must step down at the first General Meeting following their 70th birthday. Additional members - currently three persons - are elected by employees in accordance with Danish legislation.
The Board appoints its chairman and one or two deputy chairmen from among its members. All are appointed for one year at a time.
The Board has established two committees: an Audit Committee and a Compensation Committee. In accordance with new legislation for audit committees in Denmark, the Board has appointed Jan W. Hillege as the member of the Audit Committee who is independent and possesses the required insight concerning auditing.
General Meeting and shareholders
The company’s share capital is made up of two classes of share: A shares (51.1% of the capital) carrying ten votes each, and B shares (48.9% of the capital) carrying one vote each. Removing the distinction between these share classes is not currently on the agenda. Given the capital intensive growth opportunities that the Group is set to encounter over the next few years, these two share classes provide a good platform for the long-term development that can best create lasting shareholder value.
The company’s Board and Group Management are not aware of the existence of any shareholders’ agreements containing pre-emption rights or restrictions in voting rights.
The Rockwool Foundation – the company’s biggest shareholder with 23% of the share capital – works for the benefit of society, but also duly considers the long-term interests of the company. Rockwool International Board member Tom Kähler and one of the three employee-elected members, Dorthe Lybye, are also members of the Board of the Rockwool Foundation.
As mentioned in the Prospectus from 1995, an agreement exists between certain members of the Kähler family to the effect that they meet regularly to coordinate the family’s interests in the company, including their voting strategy at the company’s General Meetings, although the agreement in no way requires them to vote jointly. Tom Kähler and Thomas Kähler – both members of the Board – participate in these meetings.
