Scandinavian Tobacco Group has a two-tier management structure consisting of the Board of Directors and the Executive Management. The two governing bodies are independent of one another and have no overlapping members. The Board of Directors is responsible for the overall strategic direction of the Group and supervises the company's activities, management and organisation. The Board of Directors appoints the Executive Management, which is responsible for the day-to-day management of the Group.

BOARD OF DIRECTORS
The Board of Directors currently consists of ten members, six elected by the general meeting and four elected by the employees. Board members elected by the general meeting are elected every year. Members elected by the employees are elected for a four-year term. The Board will review its composition ahead of the 2018 Annual General Meeting.

The Board of Directors conducted six meetings in 2017. In the third quarter, the Board of Directors carried out an evaluation of the performance of the Board of Directors and its collaboration with the Executive Management that resulted in a decision to increase the number of board meetings and their structure seen over the course of the year and to reduce the number of members of the registered Executive Management.


EXECUTIVE MANAGEMENT

The Board of Directors appoints the CEO and other members of the Executive Management. The Executive Management prepares for the Board of Director’s approval and implements the Group’s overall strategy. The Executive Management is responsible for the day-to-day management of the business.

Effective 1 January 2018, the Executive Management, i.e. the formally registered management of the company, consists of the CEO and the CFO. The day-to-day operation of the company is managed by a wider group, namely the Executive Board.