Share-based incentive programs

Outokumpu’s Board of Directors has confirmed that share-based incentive programs are part of the incentive and commitment scheme for the company’s key personnel. Targets are linked to the return on capital employed and emission reductions.
Page last updated: 08.02.2024

Share-based programs are part of the Group’s incentive and commitment-building system for key employees. The objectives are to align the interests between key employees and shareholders, promote shareholder value creation and the achievement of long-term strategic targets. The programs offer the possibility of receiving Outokumpu shares as an incentive, provided that the criteria set by the Board for each earnings period are fulfilled. 

Outokumpu has currently no active stock option programs.

Performance Share Plan and Restricted Share Pool

Outokumpu's share-based programs consist of the Performance Share Plan and Restricted Share Pool. The Performance Share Plan (PSP) includes an earning criterion and is part of the regular compensation of top executives, with a maximum number of participants of 150.

The Restricted Share Pool (RSP) does not have any specific earning criteria and it is used for a limited number of employees, for key recruitments, exceptional performance, high potential, retention needs and other individual specific situations.. 

Plan periods

Outokumpu has currently three ongoing plan periods for the Performance Share Plan and Restricted Share Pool: 2021–2023, 2022–2024 and 2023–2025 as well as 2024–2026 from the beginning of 2024. 

The share rewards will be delivered in next spring after the end of each plan period if the employment conditions and performance criterion is met. Upon delivery, applicable taxes will be deducted from gross shares, and the remaining net value will be paid to the participants in Outokumpu shares.

The tables below include the participants, maximum number of gross shares and earning criteria of the ongoing share plans as well as the latest ended plan. 

Performance share plans 2021–2023   2022–2024  2023–2025  2024–2026
Number of participants  98 105  max 200   max 200 
Maximum number of gross shares to be paid 3,700,000  3,700,000   3,700,000  3,700,000
Earning criteria Return on capital employed as an absolute measure Return on capital employed (80%) CO2 emissions per ton of crude steel produced (20%) Return on capital employed (80%) and CO2 emissions per ton of crude steel produced (20%)   Return on capital employed (80%) and CO2 emissions per ton of crude steel produced (20%) 
Share delivery year  2024 2025  2026  2027 

 

Restricted Share Pool  2021–2023  2022–2024 2023–2025  2024–2026
Number of participants 56 67   *
Maximum number of gross shares to be paid  250,000  500,000** 250,000  500,000 
Share delivery year  2022, 2023, 2024  2023, 2024, 2025 2024, 2025, 2026 2025, 2026, 2027 

*) Number of participants to be confirmed later on.
**) The Restricted Share Plan (RSP) 2022–2024 includes a one time increase of share budget to maximum 500,000 gross shares to cater for an extra retention plan for up to 5–6 selected management positions with highest retention risk. 

Ownership requirement

The members of Outokumpu’s Leadership Team, including the CEO, are expected to own Outokumpu shares received under the company’s share-based incentive programs corresponding to the value of their annual gross base salary. Half of the net shares received from the share-based incentive programs must be used to fulfil this ownership requirement. 

Latest share rewards

For the Performance Share Plan’s plan period 2021–2023, the targets were met in 73.3%. Therefore, 1,324,788 gross shares will be delivered to the participants in February 2024.

In the Restricted Share Pool, the participants will receive 63,233 gross shares of the plan period 2021–2023, 57,034 gross shares of the plan period 2022–2024 (second installment) and 60,066 gross shares of the plan period 2023–2025 (first installment). A total number of 180,333 gross shares will be delivered to the participants of the Restricted Share Pool in February 2024.

For more information on the previous share plans, please check our Remuneration statements.