Kesko's year 2007

Year 2007
Divisions The Group
Financial
statements
Further information
Board of Directors' remunerations
€ thousands
Members of the Board of Directors
2007 2006
Heikki Takamäki, Chairman 65.5 61.2
Keijo Suila, Deputy Chairman
Matti Kavetvuo, Deputy Chairman
49.5 43.4
(until 27 March 2006) - 8.0
Pentti Kalliala 35.0 33.3
Eero Kasanen (until 27 March 2006) - 6.8
Ilpo Kokkila (from 27 March 2006) 34.0 25.5
Maarit Näkyvä 37.5 35.8
Seppo Paatelainen (from 27 March 2006) 36.0 27.5
Kari Salminen (from 30 March 2005) - 6.8
Jukka Säilä (from 27 March 2006) 34.0 25.5
Salaries and fees of Managing Director, Deputy Managing Director and
Corporate Management Board
€ thousands
Matti Halmesmäki, Managing Director
2007 2006
(from 1 March 2005)
Juhani Järvi, Deputy Managing Director
736.1 598.2
(17 March 2005–31 May 2007)
Corporate Management Board
124.6 254.3
(other members) 1,697.1 1,397.0
Other top management employee benefits
Share-based payments
At 31 December 2007, the Managing Director held 50,000 stock options
and the other Corporate Management Board members held a total of
214,000 stock options In 2007, the other Corporate Management Board
members were granted a total of 145,000 2007 A options. The options held
by the Corporate Management Board have equal terms and vesting periods
with the other options included in the management's option plans.
Retirement benefits
The retirement age of the Managing Director is 60 years and his full
retirement benefit is 66% of his pensionable salary. The retirement benefits
of the other Corporate Management Board members are determined
on the basis of the Employees' Pensions Act (TyEL), or based on a separate
agreement, in which case the retirement age varies between 60 and
62, and the full retirement benefit is 66% of the pensionable salary.
Termination benefits
The notice period of Managing Director is 6 months. Severance compensation
paid in addition to the salaries for the notice period corresponds
to 12 months' salary. The notice period of the other Corporate Management
Board members is 6 months and severance compensation paid in
addition to the salaries for the notice period corresponds to 6–12 months'
salary.
Financial income
€ million 2007 2006
Associates 0.0 0.0
0.0 0.0
Financial expenses
127
€ million 2007 2006
Associates 1.2 1.0
Board of Directors and management 0.0 0.0
Pension Fund 0.1 0.0
Trade receivables
1.3 1.0
€ million 2007 2006
Associates 0.1 0.3
Board of Directors and management 1.7 1.9
Pension Fund 0.5 0.1
2.3 2.3
Three members of Kesko's Board of Directors act as K-retailers. At the
balance sheet date, the receivables resulting from sales by Kesko to enterprises
controlled by them totalled €1.7 million (€2.1 million). The receivables
are covered by the commercial credit collateral granted by Vähittäiskaupan
Takaus Oy, a Kesko associate. The maximum amount of the
collateral is always limited to the realisable value of the counter-guaranteee
granted by the K-retailer's enterprise and the K-retailer entrepreneur
to Vähittäiskaupan Takaus. At the end of the period, the value of the
counter-guarantee was €5.9 million (€6.0 million).
Other current liabilities
€ million 2007 2006
Associates 24.1 37.0
Board of Directors and management 0.9 0.8
Pension Fund 1.9 2.6
26.9 40.4
Other current liabilities include e.g. chain rebate liabilities payable to the
companies controlled by three members of Kesko's Board of Directors
acting as K-retailers. Chain rebates are paid in arrears on criteria linked
to the amount of realised annual sales and the quality of operations.
In addition, Kesko's long-term receivable from a real estate associate
totals €1.0 million.
Note 47
Other notes
Events after the balance sheet date
The deal between Kesko Corporation and OKO Bank plc to sell K-Rahoitus
Oy's share capital to OKO Bank was concluded on 31 January 2008.
The preliminary price paid in connection with the conclusion of the deal
was about 30 million euros. The final price will be established based on
the amount of equity at the transaction closing date and a fixed amount
of goodwill.