Leadership team remuneration

Compensation and benefits

The performance-based short-term incentive payable to the members of the Leadership Team based on the targets set for 2018 was based on the achievement of adjusted EBITDA, occupational safety, delivery reliability and individual objectives. The maximum payment varies between 50% and 100% of the annual base salary in line with local market practices for similar positions.

The Leadership Team members are also included in the share-based incentive plans for Outokumpu management. No separate remuneration is paid to the Group CEO or members of the Leadership Team for membership of the Group’s internal governing bodies.

Outokumpu share-based incentive programs 

¹⁾ Actual Short Term Incentive 2017 payout.
²⁾ Gross, including the value of the shares on the date of delivery and taxes.

Outokumpu publishes all manager transactions as stock exchange releases per MAR regulation. The table above is updated based on the stock exchange releases.

Pension benefits and terms of service

For the deputy to the CEO (i.e. CFO), the service contract can be terminated by both parties with six months’ notice. To the extent that the service contract would be terminated by the company, other than for a cause without notice or with an ordinary notice due to misconduct, the CFO would receive additional compensation equivalent to 12 months’ salary. For the other members of the Leadership Team, the notice period is six months for the employee and either twelve months for the company, without additional severance compensation and with the possibility to stop salary payment during the notice period if the executive finds other employment before the end of the notice period, or 18 months’ base salary at the maximum, including salary for the notice period and severance compensation.

The retirement age for the members of the Leadership Team is 63 or 65 years, depending on the country of employment and date of appointment and they participate in the local retirement programs applicable to employees in the country where their employing company is located.

The members employed in Germany are entitled to pension benefits in accordance with the rules of the German Essener Verband. The members employed in Finland participate in the Finnish TyEL pension system, in addition to which they are entitled to a defined contribution pension plan for which the maximum premium is 25% of an individual’s annual earnings, excluding share rewards. The pension benefits of the other Leadership Team members vary in line with the local market practices.

Other terms

According to the share ownership plan of the Outokumpu Group, the members of the Leadership Team are obliged to own Outokumpu shares received under share-based incentive programs to the value of their annual gross base salary. Half (i.e. 50%) of the net shares received from the share-based programs must be used to fulfil the above ownership requirement.

Guarantees and business relationships

Outokumpu did not provide any guarantees or other similar commitments on behalf of members of its Board of Directors in 2018.

No members of the Board of Directors or the Leadership Team or closely related persons or institutions have any significant business relationships with the Group.