President and CEO

Konecranes' President and CEO holds the position of Managing Director under the Companies Act. The Board decides upon the appointment and the dismissal of the President and CEO. The President and CEO may be a member of the Board of Directors but may not be Chairman.

Mr. Pekka Lundmark was appointed President and CEO of Konecranes on 17 June 2005. He is not a Board member, but attends the Board meetings. The biographical details, share and option ownership, employment history and major positions of trust of the President and CEO are presented in the Annual Review 2007.

Responsibilities

According to the Companies Act, the President and CEO is in charge of the day-to-day management of the Company in accordance with the instructions and orders given by the Board. The President and CEO may undertake actions which, considering the scope and nature of the operations of the Company, are unusual or extensive, only with the authorization of the Board. The President and CEO must ensure that the accounting practices of the Company comply with law, and that financial matters are handled in a reliable manner. The President and CEO is also responsible for preparations of matters presented to the Board, and for the Company's strategic planning, finance, financial planning, reporting and risk management.

President & CEO’s contract

The President and CEO’s service contract may be terminated with six months’ notice at any time by either the President and CEO or the Company. In the event that the Company terminates the contract without cause, the Company shall pay the President and CEO a discharge compensation corresponding to 18 months’ salary and fringe benefi ts, in addition to the salary for the notice period. When the President and CEO reaches the age of 60 years, both he and the Company may request his retirement with a pension target of 60 percent of his underlying income. The President and CEO’s service terms and conditions are specified in writing in a service contract approved by the Board.