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