Investing.com -- The principal owners of The Lego Group, announced further steps to conduct an orderly transition in the active ownership of one of the world's largest toy companies, as Kjeld Kirk Kristiansen swapped roles on Wednesday with his son Thomas in Lego's hierarchy.
As part of the plan, Thomas Kirk Kristiansen will become deputy chairman of Lego's Board of Directors, while Kjeld will move to an ordinary member of the board. On the Lego Foundation, Thomas will become chairman of the board, while Kjeld will move to deputy chairman. Despite the shakeup, Kjeld Kirk Kristiansen will remain as the chairman of KIRKBI A/S, the Lego Group’s parent company.
Thomas, 37, joined the board of Lego A/S as an observer in 2004 and was later appointed as a member of the company's Board of Directors in 2007. The company was founded by Danish carpenter Oleg Kirk Christiansen, Kjeld's grandfather, in August, 1932. Upon Christiansen's death in 1958, Kjeld's father Godtfredt Kirk Christiansen took control of the company.
"I look forward to taking on a greater responsibility on behalf of the fourth generation of my family," Thomas Kirk Kristiansen said in a statement. "The Lego Group has always been more than just a company to me. We have a very clear purpose with our family enterprises, which is about the importance of play to the development and wellbeing of children. The passion for play and learning has always been a driving force in my family, and it is important for me to carry on this heritage."
Kjeld, 68, spent 25 years as Lego's CEO before stepping down from the position in 2004. Last month, Forbes' valued Kristiansen's net worth at $13.1 billion. Ranked No. 65 in Forbes' 2016 list of the World's Billionaires, Kristiansen is the richest person in Denmark.
“The family has for some years been making careful preparations for the future," Kjeld said in a statement. "I am very pleased to say that we are now ready to take certain important steps toward the smooth generational handover that will continue to maintain active family ownership of the Lego Group – not just for the next generation but also for generations to come."
"As part of the preparations, we have decided that in each generation one person should be taking on the role as the most active owner. The most active owner will on behalf of the whole family be close to the Lego Group, the Lego Foundation and KIRKBI. We in the family have agreed that Thomas should assume this role in the fourth generation. Thomas has built up an in-depth knowledge of the companies, and he enjoys the backing of the whole family."
The word lego is derived from the Danish words "leg godt," which in English is translated to mean "play well."