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Davies joined the Foxes in 2023 and has been credited with steadying the ship at the King Power Stadium. He represented the club in their profit and sustainability hearings with the Premier League.
Leicester were docked six points last month for breaching financial regulations but Davies' work in making the club more compliant to the rules is believed to have helped knock points off the final punishment.
The club have appealed against the deduction and their PSR concerns should be over once the outcome is known.
The penalty dropped the Foxes into relegation danger and they are now a point from safety, 10 years after winning the Premier League.
"As we move into a new chapter in the Leicester City story, we want to build a leadership structure that best reflects the demands of the modern game and the specialisms necessary for us to excel in an increasingly competitive environment," said Leicester chairman Aiyawatt Srivaddhanaprabha., external
"Kevin has been a powerful, stabilising force behind the scenes during a difficult period of adjustment for the club and has demonstrated the skills to lead, develop and align our key business functions and the overall strategy that guides them.
"Jon's knowledge of the club, its football culture and the wider football landscape is extensive and complements those skills in a way that sets us up strongly for this next phase of the club's growth."
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