Who Owns Kone Company?

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Who Owns KONE?

Understanding KONE's ownership is key to its strategic path and stakeholder accountability. The Herlin family's significant influence, starting with a 1920s acquisition, has shaped KONE's journey.

KONE Corporation, founded in 1910, evolved from a machine repair shop to a global leader in elevators and escalators, focusing on improving urban 'People Flow'.

In 2024, KONE achieved EUR 11.0 billion in sales with over 60,000 employees across nearly 70 countries, ranking among the top four in its industry. This analysis explores KONE's ownership history, from early stakeholders to current public shareholders and significant changes.

The Herlin family, through holding companies like Makiine Oy and holding structures, has maintained a controlling interest, ensuring a long-term perspective. This family ownership has been instrumental in guiding KONE's strategic decisions, including its expansion and technological advancements, such as its Kone PESTEL Analysis, which highlights the external factors influencing its operations.

KONE's journey began on October 27, 1910, as Osakeyhtiö Kone Aktiebolag, a subsidiary of Gottfr. Strömberg Oy. Initially, it focused on refurbishing motors and importing elevators. The company's independence and significant ownership shift occurred in 1924.

Founding Entity

KONE was initially incorporated as a subsidiary of Gottfr. Strömberg Oy, a Finnish electrical engineering firm.

Early Operations

The company's early activities involved refurbishing used motors and importing and installing elevators.

Key Acquisition

Harald Herlin acquired KONE from Strömberg in 1924, marking its transition to an independent company.

Family Legacy

Harald Herlin's son, Heikki H. Herlin, joined in 1928 and became president in 1932, establishing multi-generational family leadership.

Ownership Foundation

Harald Herlin's acquisition laid the foundation for the Herlin family's long-term influence and strategic direction.

Independence

The 1924 acquisition by Harald Herlin was a pivotal moment, transforming KONE into an independent entity.

The acquisition of KONE by Harald Herlin in 1924 was a crucial turning point, establishing the Herlin family as the principal owners and setting the stage for their enduring influence. This strategic move allowed KONE to operate independently and chart its own course, with Harald Herlin serving as the chairman of the Board of Directors. His son, Heikki H. Herlin, further solidified the family's commitment by joining the company in 1928 and assuming the presidency in 1932. This generational transition ensured a consistent vision and operational leadership, deeply embedding the family's ownership stake and strategic direction into the company's DNA. While specific early buy-sell agreements are not detailed, this period marked the beginning of a stable, family-driven ownership structure that would guide KONE's growth and development for decades, influencing its Marketing Strategy of Kone.

Early Ownership Structure

KONE's initial ownership was tied to its parent company, Gottfr. Strömberg Oy, before a significant change in 1924.

• Harald Herlin's acquisition in 1924 made KONE an independent company.
• The Herlin family became the principal owners and held key leadership positions.
• Heikki H. Herlin's presidency in 1932 cemented multi-generational family control.
• This early ownership structure provided a stable foundation for the company's future.

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The ownership of KONE has been significantly influenced by the Herlin family since 1924, with their control maintained through a dual-class share structure. This structure, featuring unlisted Class A and listed Class B shares, ensures the family's substantial voting power remains intact despite public trading.

Antti Herlin, the current Chairman of the Board, holds a commanding influence over KONE Corporation. As of the KONE Annual Review 2024, his ownership, managed through Security Trading Oy and Holding Manutas, accounts for 51.0% of the total shares and an impressive 62.7% of the voting rights. This concentration of ownership solidifies the Herlin family's controlling stake and strategic direction for the company.

KONE's Shareholder Landscape

KONE's ownership is a blend of family control and significant institutional investment. While the Herlin family maintains a majority of voting rights, global investors also play a crucial role.

• Herlin family holds a majority of voting rights, ensuring strategic continuity.
• Institutional investors, both foreign and nominee-registered, collectively own 44.4% of shares.
• These institutional holdings represent 19.4% of the total voting rights.
• The company's IPO of Class B shares facilitated broader public participation in KONE stock ownership.
• Past events, like the 2005 spin-off of Cargotec, have shaped the current ownership distribution, with Antti Herlin consolidating his stake in KONE.

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The Board of Directors at KONE Corporation includes key members of the controlling Herlin family, who maintain significant influence over the company’s strategic direction. Antti Herlin serves as the Chairman of the Board, with his son, Jussi Herlin, as Vice Chairman, and his daughter, Iiris Herlin, also holding a board position. This multi-generational involvement underscores the family's deep commitment to KONE's governance.

KONE's voting power is concentrated due to its dual-class share system. Class A shares carry one vote each, while 10 Class B shares equate to one vote, with a minimum of one vote per shareholder. Antti Herlin’s ownership of 51.0% of KONE shares translates to control over 62.7% of the total voting rights, effectively solidifying the Herlin family's majority control. This structure limits the influence of other shareholders, including institutional investors, on voting matters. The company's governance framework has remained stable, with no significant public reports of proxy battles or activist investor campaigns challenging this established voting power.

Understanding KONE's Voting Structure

KONE's ownership is heavily influenced by its dual-class share system, which grants significant voting power to a select group of shareholders.

• Class A shares have one vote per share.
• Class B shares have one vote for every 10 shares.
• The Herlin family holds a majority of the voting rights, approximately 62.7%.
• This structure ensures consistent control and strategic direction for KONE.
• Understanding this Growth Strategy of Kone is key to grasping its market position.

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Recent shifts in leadership and strategic direction mark a dynamic period for Kone Corporation. The company is actively aligning its operations with future industry demands, particularly in sustainability and technological advancement, which may influence its ownership landscape.

Kone Corporation has recently implemented share transfers as part of its long-term incentive programs for key personnel. In January and February 2025, the Board of Directors approved directed share issues without consideration to fulfill share rewards under the company's Restricted Share Plans for 2022, 2023, and 2024. These actions included assigning 31,410 Class B shares for the 2022 plan, 16,808 shares for the 2023 plan, and 2,266 shares for the 2024 plan in January 2025. Furthermore, in February 2025, an additional 253,248 Class B shares were assigned to 402 key employees involved in the 2022-2024 performance-based incentive plan. These equity-based incentives aim to align employee interests with company performance, potentially leading to minor dilution for existing shareholders while fostering internal commitment. As of February 13, 2025, Kone Corporation held 11,564,020 of its own Class B shares. The broader industry trend towards sustainability and smart building solutions is reflected in Kone's new 'Rise' strategy for 2025-2030, which is expected to attract environmentally conscious investors and shape the company's long-term ownership profile.

Leadership Transition Impact

Philippe Delorme's appointment as CEO signifies a strategic focus on technology and sustainability. His background is expected to drive Kone's new 'Rise' strategy.

Share Incentive Programs

Recent share assignments in early 2025 underscore Kone's use of equity incentives. These programs aim to align employee interests with company growth and performance.

Strategic Alignment with Market Trends

Kone's 'Rise' strategy for 2025-2030 emphasizes sustainability and carbon emission reduction. This aligns with growing investor interest in environmentally responsible companies.

Shareholder Structure Dynamics

The issuance of shares for incentive plans may lead to slight dilution but is intended to boost internal engagement. Understanding these dynamics is key for tracking Kone ownership.

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