Governance and policies

The LEGO Foundation is managed by a board of directors composed of six members elected according to its charter. The board defines the strategy of the LEGO Foundation and makes decisions of major significance in addition to final decisions about grants and donations.

Furthermore, the board supervises the organisation and makes sure that the LEGO Foundation is managed appropriately and in accordance with applicable law and its charter. The board does not participate in the dayto-day management of the Foundation, but it appoints the CEO, who is in charge of the day-to-day operations.

There are a minimum of five physical board meetings each year and in addition there are conference call meetings when necessary. The work of the board is regulated in its Rules of Procedure. The Rules of Procedure are drawn up to describe the guidelines for the responsibilities of the board of directors, and how the board's work is to be organised.

The board of the LEGO Foundation reviews the Foundation's strategy on an annual basis, and reviews a number of policies and procedures to ensure good governance (see policies above).

The six members of the board are elected for a period of two consecutive years, taking into consideration the need for continuity in the board’s work. Two members shall be independent in accordance with the foundation charter. In accordance with the board's Rules of Procedure, the board of directors shall evaluate the competences and know-how of the board on an ongoing basis to ensure that the board serves its purpose to the benefit of the LEGO Foundation. Each board member is entitled to recommend a new member, and a simple majority will then decide the recommendation / election. No member who has turned 75 years of age can be elected or re-elected.

Independent members of the board are remunerated by a fixed fee that does not depend on the financial results.The remuneration of each member is specified in the annual report. There was no extraordinary remuneration for special tasks paid to the board in 2014. The LEGO Foundation wants to ensure transparency in respect of all of its activities. This is done through a high level of information on the LEGO Foundation website and a detailed description of the activities of the year in the annual review and report.

In 2014, the board of directors initiated a process to ensure that the foundation is compliant with and follows the spirit of recommendations for good governance. This means that these recommendations are integrated into the Foundation's Rules of Procedure, and that the board of directors in February 2015 approved and published a number of formal policies – "Diversity Policy", "Communication Policy" and "Distribution Policy".

The LEGO Foundation Annual Report is in compliance with the recommendations for best practice in Danish Foundations. The compliance status reported by the board of directors can be found above.