Performance shares The vesting of any performance shares is subject to achievement of performance  conditions determined by the Committee  prior to the date of grant and measured over a three-year period.  The performance conditions further increase  and support alignment between the executive  directors’ reward and the long-term Group  strategy and shareholder value. In order for  any award (or part of an award) to vest, the  Committee must be satisfied that underlying  Group performance is at a satisfactory level.  PERFORMANCE CONDITIONS FOR PERFORMANCE SHARES  Element of pay Objective Award level Performance criteria Perfomance period Fixed salary Attract and retain high-performing individu- als by reflecting market value of role and  executive’s skills and experience. Reward  day-to-day performance. Set at a level to  prevent over-reliance on variable pay. Takes into account the market rate for similar roles in international comparator companies as well as the skills and experience of the executive. No performance criteria per se, but the performance of the individual is taken into account when fixed salary  levels are reviewed. N/A Benefits Operate a competitive benefits suite to aid recruitment and retention. Perquisites and other benefits corresponding to market practices. N/A N/A Pension Executives make their own provision for retirement. N/A N/A N/A Annual bonus plan Drive and reward delivery of short-term  business objectives. Maximum bonus opportunity is 100% of fixed salary.  Bonus opportunity at target is 60% of fixed salary. EBIT, free cash flow, net profit, growth in market share.  1 year Long-term  incentive  plan Drive and reward longer-term business  objectives. Maximise alignment with shareholder value. The maximum level of long-term incentive awards is 200% of fixed salary based on the fair value of an award at the date of grant. However, actual  awards in 2013 were below the permitted maximum. For share options, inherent share price growth target. For performance share awards: • Relative total shareholder return (TSR) (40% of the award). • Growth in adjusted EPS (30% of the award). Organic growth in market share (20% of the award). • CSR target (10% of the award). Options exercisable between 3rd and 8th anniver- sary of grant. Performance period for performance  shares: 3 years.  REMUNERATION POLICY Carlsberg Group Annual Report 2013 45 Management review REMUNERATION REPORT 1  TSR comparator group: Anheuser-Busch Inbev, Asahi Group Holdings, Beam, Britvic, Brown-Forman ‘B’, Coca-Cola, Davide Campari-Milano, Diageo, Dr Pepper Snapple,  Heineken, Kirin Holdings, Molson Coors Brewing ‘B’, Monster Beverage, PepsiCo, Pernod Ricard, Rémy Cointreau, SAB Miller, Sapporo Holdings. Measure Weighting Performance condition and period Relative total shareholder return (TSR) TSR measures the total return to investors. Carlsberg’s TSR performance will be measured relative to a comparator group of 18 companies 1 .  40% • Measured over 3 years from date of grant.  25% of TSR element vests if Carlsberg’s TSR performance is at median of peer group 1 . • 100% vests for upper-quartile performance.  Straight-line vesting between median and upper quartile.  Adjusted EPS growth Adjusted EPS growth targets measure the Group’s underlying financial success. 30% • Measured over 3 financial years. 25% of the adjusted EPS element vests for 6% p.a. growth.  • 100% vests for 11% p.a. growth. Straight-line vesting between 6% p.a. and 11% p.a. Organic growth in market share  Growth in market share supports Carlsberg’s strategic aim to be the fastest growing global beer company. 20% • Measured over 3 financial years. Account taken of the majority of the Group’s markets, weighted by volume.  Corporate social responsibility  Carlsberg has long held itself to high standards of corporate social performance. 10% • Measurement of CSR (environment, consumers, employees, communities and other stakeholders) for our major markets.