The Board of Directors decides on the interpretation and implementation of the terms and conditions and any other matters relating to the share-based incentive programs. The Board also decides on the exact contents of the performance criteria.
The remuneration of the Board of Directors is decided annually by the Annual General Meeting.
Main principles of rewarding
The compensation of the CEO and the members of the Leadership Team consist of base salary, fringe benefits, short-term incentives, share-based long-term incentives and pension arrangements. The total compensation is reviewed regularly by the Board of Directors. The review includes benchmarking the different components of total remuneration to market practices in corresponding positions. Outokumpu has adopted a compensation philosophy which includes shareholder value as the underlying focus of the reward strategy, incentives aligned with the business strategy, pay for performance and competitive salaries and total compensation. Incentive plans emphasize absolute performance to ensure that management achieves its goals and relative performance to encourage Outokumpu to perform better than its peers.