The President and CEO’s compensation in 2017 consisted of a basic salary, taxable benefits (housing benefit, car benefit, phone benefit, medical and life insurance and compensation for the schooling costs of his children in Finland), matching share plan and a yearly short-term incentive as determined by the Board based on the company’s key targets.
CEO remuneration
The performance-based short-term incentive
The performance-based short-term incentive payable based on
the targets set for 2017 could not exceed 95% of the CEO’s
annual basic salary, and it was based on the achievement of
EBITDA, occupational safety, a savings target and individual
objectives.
Share-based incentive plans
Matching Share Plan for the CEO
The CEO is part of a Matching Share Plan according to which he is entitled to receive in total 1,157,156 gross shares including taxes on the condition that he personally invested EUR 1 million into Outokumpu shares by February 20, 2016. The matching shares will be delivered in four equal instalments in the end of 2016, 2017, 2018 and 2019, respectively. The first vesting portion, in total 185,077 shares after deduction of applicable taxes, was delivered to the CEO in the end of 2016. The CEO is required to keep at least all the shares he has acquired and the first vesting portion throughout his service with Outokumpu. If the CEO's service contract is terminated without any fault or negligence attributable to him, all unvested matching shares (ie. shares not yet delivered) will vest at the expiry of the CEO agreement, provided that the ownership requirement for the CEO is fulfilled.
2018 share rewards in Matching Share Plans
The third vesting portion, in total 185,077 shares after deduction of the applicable taxes, was delivered to the CEO at the end of December 2018. Under the Matching Share Plan, the CEO is required to keep at least all the shares he has acquired and the first vesting portion paid at the end of December 2016 throughout his service with Outokumpu. If the CEO’s service contract is terminated without any fault or negligence attributable to him, all the unvested matching shares (i.e. shares not yet delivered) will vest at the expiry of the CEO agreement, provided that the ownership requirement for the CEO is fulfilled.
Outokumpu announces all manager's transactions, including the CEO's, made with its financial instruments as stock exchange releases per MAR regulation.
All Outokumpu share-based incentive plans
Pension benefits and terms of service
The CEO has the right to retire at the age of 63. He participates in the Finnish TyEL pension system, and he is included in a defined contribution pension plan with an annual insurance premium of 25% of his annual earnings, excluding share rewards.
The service contract of the CEO is valid until further notice. The CEO is not entitled to a specific severance payment, and the notice period is three months for both parties.
Jan 02, 2019