Governance

Ascendis Health strives to achieve high standards of corporate governance and ethical practices to ensure the sustainability of the business. The board acknowledges the relationship between good governance and long-term equity performance, recognising that investors afford premium ratings to well managed businesses.

The governance framework covers risk management, legislative and regulatory compliance, internal controls, external and internal audit, and is underpinned by the principles of accountability, transparency and integrity.

• Ascendis subscribes to the spirit of good corporate governance embodied in the King governance codes and will report according on the newly adopted King lV code in the 2018 integrated report to be published in September 2018.
• The board is elected by shareholders and currently consists of five non-executive directors (with three classified as independent directors) and one executive director (holding the position of joint chief financial officer and interim chief executive officer).
• The independence of all non-executive directors is reviewed annually.
• The roles of the chairman and CEO are separate and clearly defined, ensuring a balance of authority and limiting individual decision-making powers.
• Three specialist governance committees have been constituted to assist the board in meeting its oversight responsibilities. These are the audit and risk; human capital (commonly known as the remuneration and nominations); and social, ethics and transformation committees.
• The audit committee members are elected annually by shareholders
• The board recognises that diversity among the directors enhances the quality of decision-making at board level. The board has adopted a board diversity policy and aims to adhere to the recommendations set out therein.
• The group’s remuneration policy and implementation report are proposed to shareholders for a non-binding advisory vote at each annual general meeting.