Management and control
Corporate governance
The KION Group follows generally accepted standards of sound, responsible corporate governance. The German Corporate Governance Code (DCGK), as amended, provides the framework for management and control. As required by section 289f and section 315d of the German Commercial Code (HGB), the corporate governance standards that the Group applies are set out in the declaration on corporate governance. This declaration also contains the declaration of conformity pursuant to section 161 AktG, which was issued by both the Executive Board and the Supervisory Board of KION GROUP AG on December 17, 2020, and the corporate governance report pursuant to principle 22 of the 2020 German Corporate Governance Code, which also provides information about the compliance standards in the Group. The declaration on corporate governance can be viewed and downloaded on the Company’s website. It also forms part of this annual report and is a component of the combined management report.
The essential features of the remuneration system are described in the ‘Remuneration report’ section. The total amounts for Executive Board remuneration and Supervisory Board remuneration are also reported in the notes to the consolidated financial statements (note [47]).
Non-financial declaration
A separately published sustainability report provides detailed information on the sustainable management of the KION Group. It contains the KION Group’s report on non-financial matters as required under the German law to implement the corporate social responsibility (CSR) directive. The non-financial Group report focuses on targets, action steps, and due diligence processes relating to the key environmental, social, and employee-related aspects of the KION Group’s business model, the observance of human rights, and the fight against corruption and bribery.
In accordance with the statutory disclosure deadlines defined in section 325 HGB, the KION Group publishes its annual sustainability report (including the non-financial declaration) by no later than the end of April each year on its website, where it will remain available for at least ten years.
Executive Board
The Executive Board of KION GROUP AG is responsible for the operational management of the KION Group and had four members in 2020. Susanna Schneeberger and the Supervisory Board reached agreement by amicable and mutual consent that her employment at the KION Group would end on March 31, 2020 due to differing views on corporate strategy. A member of the Executive Board of KION GROUP AG, she was in charge of the Supply Chain Solutions segment (Dematic) and held the post of Chief Digital Officer with responsibility for digital transformation. These duties were reassigned among the remaining four Executive Board members.
The responsibilities of the Executive Board members as at December 31, 2020 are listed in the declaration on corporate governance.
Since January 1, 2021, the Executive Board of KION GROUP AG, which is responsible for the operational management of the KION Group, has had six members. The Supervisory Board appointed Hasan Dandashly for four years and Andreas Krinninger for three years as additional members of the Executive Board of KION GROUP AG with effect from the start of 2021. All of the Group’s operating activities are now explicitly assigned to particular areas of responsibility on the Executive Board of KION GROUP AG. The Executive Board as a whole is collectively responsible for key operational and strategic decisions and for the allocation of resources. Hasan Dandashly has Executive Board responsibility for the Supply Chain Solutions (SCS) segment, which comprises the global business of Dematic. Andreas Krinninger has assumed responsibility within the Executive Board for the EMEA business of the Industrial Trucks & Services (ITS) segment, which includes the operational business of KION brand companies Linde, STILL, and Baoli within the EMEA region.
The Supervisory Board of the KION GROUP AG has also appointed Dr. Henry Puhl for three years as a member of the Executive Board in the role of CTO with effect from July 1, 2021. He will succeed Dr. Eike Böhm, who will be retiring on June 30, 2021.
Ching Pong Quek retains responsibility within the Executive Board of KION GROUP AG for the Industrial Trucks & Services (ITS) segment in the APAC and Americas regions. Anke Groth will continue as CFO and Labor Relations Director. Gordon Riske remains the CEO.
The Executive Board maintains a relationship of trust with, and is monitored by, the Company’s Supervisory Board.
Supervisory Board
The Supervisory Board, which was formed in accordance with the German Codetermination Act (MitbestG), comprises 16 people. In addition to its control function, it advises the Executive Board in its handling of significant matters and business transactions. To increase the efficiency of its work, the Supervisory Board is supported by four standing committees: the Nomination Committee, the Executive Committee, the Audit Committee, and the Mediation Committee.
All of the shareholder representatives on the Supervisory Board have been elected for a term of five years. Jiang Kui, Dr. Christina Reuter, Hans Peter Ring, and Xu Ping resigned as Supervisory Board members with effect from the end of the Annual General Meeting on July 16, 2020 so that the terms of office of the shareholder representatives on the Supervisory Board would not all end at the same time in the future. As proposed by the Supervisory Board, they were then re-elected to the Supervisory Board for a term of five years. This has created a staggered board structure, thereby helping to ensure the continuity of the Supervisory Board’s work.