Progress Report 2012 - Lego

a professional management team and has an
independent Board of Directors.
Since the establishment of the LEGO Group in
1932, the company has been privately owned by
the Kirk Kristiansen family. Our approach to good
corporate governance is focused on combining
the strengths and benefits of being privately
owned with good corporate governance for listed
companies. A benefit associated with being
privately owned by few family owners include
having owners close to the business with strong
industry knowledge and strong values, which can
be inspiring and supporting for the development of
the company and the employees. Other benefits of
family ownership are the ability to have long-term
focus and to move fast and be agile in response to
changes in the business environment.
Board of Directors
The LEGO Group’s Board of Directors consists of
seven members. Three of these are considered
dependent on the company; two due to ownership
of KIRKBI A/S, and one due to being in the
management of the parent company, KIRKBI
A/S. The Chairman and three other members are
considered to be independent.
As a family-owned business, it is important to
maintain a professional management of the company,
including a strong and competent board of directors.
The LEGO Group has a decade-long practice of
electing the Chairman from among the independent
board members. The owners work to ensure
professional board management, including the
definition of required board competencies to ensure
a diverse and complementary composition of the
board, regular board self-assessments, competitive
compensation paid to the board of directors, and
clear and specific rules on the mandate for each of
the management bodies in the LEGO Group.
Furthermore, as a family-owned company, the LEGO
Group is more exposed to the risks involved in
the handover from one generation to the next. To
mitigate this risk, a plan has been prepared and
implemented that secures high involvement of the
next generation of the family owners in company
matters related to the ownership.
Corporate Management
The LEGO Group Management Board and Corporate
Management team, consist of 22 members
organised in three main areas: Operations, Marketing
and Business Enabling.
The LEGO Group Management Board consists of the
President and Chief Executive Officer, Jørgen Vig
Knudstorp, the Chief Financial Officer, John Goodwin,
the Chief Operating Officer, Bali Padda and the Chief
Marketing Officer, Mads Nipper. The Management
Board reports to the Board of Directors.
166 The LEGO Group Progress Report 2012
Performance and compliance
167