Outokumpu

2003 option program


The Annual General Meeting held in 2003 passed a resolution on a stock option program for management. Stock options are part of the Group's incentive and commitment-building system for key employees, and the objective is to encourage recipients to work in the long term to increase shareholder value. The reward system is based on both Group earnings and relative performance, with rewards geared to accomplishments.

The total amount of share options that may have been issued was 5 100 000, entitling holders of stock options to subscribe for 5 100 000 new shares in the Company in the period 2006–2011. Stock options have been marked 2003A, 2003B and 2003C and have been distributed by decision of the Board of Directors, without additional consideration, in 2004, 2005 and 2006, in deviation from shareholders' pre-emptive rights, to the key persons employed by the Outokumpu Group. In deciding on the number of stock options to be distributed annually in total and to each individual, the Board of Directors assessed the Group's earnings trend and performance by comparing, for example, the trend in earnings per share with the trend for the same key ratio in peer companies. In accordance with the share ownership plan of the program members of the Group Executive Committee are obligated to purchase Outokumpu shares with 10% of the income they obtain from stock options.

The subscription price for shares through the exercise of stock option 2003A is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2003 to February 29, 2004 (EUR 7.25), with stock option 2003B it is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2004 to February 28, 2005 (EUR 10.31) and with stock options 2003C it is the trading volume-weighted average price of the Outokumpu Oyj share on the NASDAQ OMX Helsinki from December 1, 2005 to February 28, 2006 (EUR 10.94). On each dividend record date, the share subscription price of stock options will be reduced by the amount of dividends to be decided after the close of the period for determining the subscription price and prior to share subscription.

Following the subscriptions with 2003 stock options, Outokumpu Oyj’s share capital may be increased by a maximum of eur 2 698 400 and the number of shares by a maximum of 1 587 294. The number of shares that can be subscribed for on the basis of the stock options corresponds to 0.9% of the Company’ shares and voting rights.

 

Stock Option Number of participants
Dec 31, 2008
Subscription period Dividend adjusted
Share Subscription Price
Dec 31, 2008
The number of shares
subscribed by
Dec 31, 2008
An aggregate maximum of shares that can be
subscribed with the remaining stock options
The number of
stock options annulled by
Dec 31, 2008
2003A 13 Sep. 1, 2006 -
Mar. 1, 2009
7.25 € 627 854 31 448 1 040 698
2003B 48 Sep. 1, 2007 -
Mar. 1, 2010
10.31 € 758 107 270 713 671 180
2003C 8 Sep. 1, 2008 -
Mar. 1, 2011
10.94 € 8 200 90 500 1 601 300

 

Listing timetable of the stock options 2003

Increases in share capital to the trade register and the listing of shares subscribed with 2003 A, B and C stock options on the OMX Nordic Exchange Helsinki will be made according to the following timetable during 2008, 2009 and in 2010:


Subscriptions/payments made on or before

Estimated trade register day

Estimated date of listing on OMX Nordic Exchange Helsinki

 

8.9.2008

24.10.2008

18.12.2008

31.12.2008

9.2.2009

2.3.2009

28.4.2009

4.6.2009

7.8.2009

21.9.2009

29.10.2009

17.12.2009

31.12.2009

8.2.2010

1.3.2010

3.5.2010

26.7.2010

25.10.2010

29.11.2010

31.12.2010

 

19.9.2008

3.11.2008

31.12.2008

12.1.2008

18.2.2009

11.3.2009

11.5.2009

16.6.2009

18.8.2009

1.10.2009

9.11.2009

31.12.2009

13.1.2010

16.2.2010

9.3.2010

11.5.2010

3.8.2010

2.11.2010

8.12.2010

13.1.2011

 

22.9.2008

4.11.2008

2.1.2009

13.1.2009

19.2.2009

13.3.2009

12.5.2009

17.6.2009

19.8.2009

2.10.2009

10.11.2009

4.1.2010

14.1.2010

17.2.2010

10.3.2010

12.5.2010

4.8.2010

3.11.2010

9.12.2010

14.1.2011



PDF file 2003 stock options - terms and conditions ENG / FIN