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, seven elected by the general meeting and three elected by the employees in Denmark. Board members elected by the general meeting are elected for the period until the next annual general meeting. Members elected by the employees are elected for a four-year term, and an election of employees took place in 2019.
The work of the Board of Directors is organised according to an annual plan, and in 2019 the Board conducted seven meetings as well as a full-day strategy seminar. The Executive Management attends the meetings of the Board of Directors and when relevant also members of the Executive Board and wider management are invited to the meetings. During the second half of the year, the Board of Directors carried out an evaluation of the performance of the Board of Directors and its collaboration with the Executive Management. The evaluation process was carried out as a combination of a survey and interviews and with the assistance of an external consultant. The overall result of the evaluation was that the Board is well-functioning, but there were also areas identified where the was an opportunity to improve the board work. Thus, going forward the Board will give additional attention to succession and IT- and cyber issues, and materials used in connection with Board meetings will be simplified and shortened to focus the Board’s discussions at the meetings.
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.
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.