President and CEO
Kesko has a managing director who is the President and CEO. Kesko's President and CEO is Matti Halmesmäki, Master of Science in Economics, Master of Laws. He has been Kesko's President and CEO since 1 March 2005. His duties as the President and CEO will end on 31 December 2014, as agreed with the Board.
The President and CEO's duty is to manage the company in accordance with the instructions and orders issued by the company Board and to inform the Board about the developments in the company's business operations and financial situation. He is also responsible for the company's day-to-day management and that the financial affairs are handled in a reliable manner. The President and CEO also chairs the Group Management Board and the Boards essential with regard to business operations.
The President and CEO is elected by the Board, which has also made the decisions on the terms of the President and CEO's service contract. A written managing director's service contract, approved by the Board, has been made between the company and the President and CEO.
Starting from 1 January 2015, the Board of Directors has appointed Mikko Helander, Master of Science (Technology), as the company's new President and CEO. Starting from 1 January 2015, President and CEO Matti Halmesmäki will continue as a special advisor and in special assignments to be agreed with Kesko's Board of Directors until 31 May 2015 when he will retire.
Group Management board
Kesko Group has a Group Management Board, the Chair of which is Kesko's President and CEO.
Group Management Board members and responsibility areas in 2014
* Rauhala's area of responsibility includes the food trade and Kesko's store site operations in Russia until 31 December 2014. Starting from 1 January 2015, Rauhala will be responsible for Kesko's grocery trade.
** Kalliokoski's area of responsibility includes the building and home improvement trade until 31 December 2014. Starting from 1 January 2015, Kalliokoski will be responsible for Kesko's home improvement and speciality goods trade.
The Group Management Board has no authority based on legislation or the Articles of Association. The Group Management Board is responsible for considering Group-wide development projects and Group-level policies and practices. In addition, the Group Management Board discusses the Group's and the division parent companies' business plans, profit performance and matters handled by Kesko's Board of Directors, in whose preparation it also participates. The Group Management Board meets 8–10 times a year.
The Board members of Kesko's most significant subsidiaries are chosen from among Kesko Group executives. They are not paid separate fees for acting as subsidiary Board members. The most important functions of subsidiary Boards include the preparation of the companies' and their sub-groups' strategies, operating plans and budgets, as well as making decisions on capital expenditures, company acquisitions and contingent liabilities within the authorisations granted by Kesko's Board. The Presidents and Board compositions of the most significant subsidiaries are presented under "Division Boards of Directors".