Management and control
Corporate governance
The KION Group follows generally accepted standards of sound, responsible corporate governance. The German Corporate Governance Code (GCGC), as amended, provides the framework for management and control in the KION Group. The corporate governance standards that the Group applies, which go further than the legal requirements, are set out in the corporate governance statement in accordance with sections 289f and 315d of the German Commercial Code (HGB). This statement also contains the declaration of conformity pursuant to section 161 AktG*, which was issued by the Executive Board and the Supervisory Board of KION GROUP AG on November 27 and December 12, 2023 respectively, and the corporate governance report pursuant to principle 23 of the GCGC. The corporate governance statement 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 presented in KION GROUP AG’s separate 2023 remuneration report, which is published on the KION Group website. The total amounts for Executive Board remuneration and Supervisory Board remuneration are also reported in the notes to the consolidated financial statements (note [47]).
* The declaration of conformity pursuant to § 161 AktG is not subject to a substantive audit by the auditor.
Non-financial Group report
The separately published non-financial report provides information on the sustainable management of the KION Group. It contains the KION Group’s separate non-financial Group report as required under Germany’s CSR Directive Implementation Act (CSR-RUG). 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. The risks and opportunities for the KION Group associated with climate-related aspects and other social and environmental factors, as well as the environmental and social impact of the Company’s activities, are recorded, assessed, and taken into account systematically and on an ongoing basis, including in the financial reporting.
In accordance with the statutory disclosure deadlines defined in section 325 HGB, the KION Group is publishing its annual non-financial report (which includes the non-financial Group report) simultaneously with this report on February 29, 2024 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. It maintains a relationship of trust with, and is monitored by, the Company’s Supervisory Board. The Executive Board as a whole is collectively responsible for key operational and strategic decisions and for the allocation of resources.
The Executive Board of KION GROUP AG had seven members as at the end of the reporting year. Dr. Richard Robinson Smith is Chief Executive Officer of KION GROUP AG. With effect from July 6, 2023, Christian Harm took over the role of Chief Financial Officer (CFO) from Marcus A. Wassenberg, who served as CFO from January 1, 2023 to July 6, 2023. Dr. Henry Puhl served as Chief Technology Officer (CTO) of KION GROUP AG until the end of the reporting year, when he left the Company at his own request in order to pursue new challenges elsewhere. The Operating Units are represented on the Executive Board by Hasan Dandashly, President KION Supply Chain Solutions, who retired at the end of the reporting year, Andreas Krinninger, President KION ITS EMEA, whose term of appointment was extended by a further five years, and Ching Pong Quek, President KION ITS Asia Pacific & Americas. In addition, Valeria Jimena Gargiulo joined the Executive Board of KION GROUP AG on May 1, 2023 in the newly created role of Chief People & Sustainability Officer (CPSO) and as Labor Relations Director. As a result, the schedule of responsibilities for the Executive Board of KION GROUP AG was updated in May 2023.
On January 1, 2024, Michael Larsson became President KION SCS & ITS Americas, taking on Executive Board responsibility for the Supply Chain Solutions (SCS) segment and for the Americas region in the Industrial Trucks & Services (ITS) segment. Also on January 1, 2024, Ching Pong Quek took on an additional role as the new CTO. The Executive Board member remains in his role as President KION ITS APAC but has handed over responsibility for the Americas region in the Industrial Trucks & Services segment to Michael Larsson. As a result of these personnel changes, the schedule of responsibilities was updated again with effect from January 1, 2024.
Supervisory Board
The Supervisory Board of KION GROUP AG, which was formed in accordance with the German Codetermination Act (MitbestG), comprises 16 people. It has an oversight function and advises the Executive Board on its handling of significant matters and business transactions. This includes monitoring and providing advice on sustainability topics.
In the reporting period, the Supervisory Board was supported by five standing committees (Nomination Committee, Executive Committee, Audit Committee, Mediation Committee, and Remuneration Committee).
All of the shareholder representatives on the Supervisory Board have been elected for a term of five years. The Annual General Meeting on May 17, 2023 elected Dr. Nicolas Peter as a new member of the Supervisory Board of KION GROUP AG. He replaced Dr. Michael Macht, who stepped down from his roles as a member and the chairman of KION GROUP AG’s Supervisory Board with effect from the end of the Annual General Meeting on May 17, 2023. Hans Peter Ring, who has been a member of the Supervisory Board since June 2013, was elected as chairman of the Supervisory Board immediately after the Annual General Meeting. His previous role of chairman of the Audit Committee was taken over by Dr. Nicolas Peter.