Remuneration

The 2008 Annual General Meeting adopted the Board’s proposal on principles for remuneration and other employment terms for management. The basic principle is that the company should seek to offer its senior executives a market-based compensation package.

Compensation should be based on the importance of the tasks involved, and on the skills, experience and performance requirements of each role. The remuneration consists of a fixed basic salary, bonus and pension benefits, and other benefits and termination conditions. Company management consists of the Group Chief Executive Officer and the heads of department in Morphic’s management group as well as the CEOs of Morphic’s subsidiaries.

Information on compensation paid to the Chairman, CEO and other senior executives in respect of the financial year 2008 is provided in Note 13 of the annual report for 2008.