The objectives are to reward key personnel for good performance and thereby support Outokumpu’s strategy, and to direct management attention towards increasing Outokumpu’s profitability and shareholder value. 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's share-based programs consist of the Performance Share Plan (PSP) and Restricted Share Pool (RSP).
Outokumpu has currently no active stock option programs.
Performance Share Plan and Restricted Share Pool
The Performance Share Plan includes an earning criterion and has a maximum number of participants for each plan of 150. It is part of the regular compensation of top executives. Earning criteria for current plan periods are given in the table below.
The Restricted Share Pool 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 need and other individual specific situations.
Current plan periods
Outokumpu has currently three ongoing plan periods for the Performance Share Plan and Restricted Share Pool: 2019–2021,2020–2022, and 2021–2023.
The Board of Directors approved on December 14, 2020 the commencement of Outokumpu’s share-based programs for the period 2021–2023, Performance Share Plan and Restricted Share Pool. The plans commence at the beginning of 2021.
The earning criterion of the Performance Share Plan for this period measures Outokumpu's profitability and the efficiency with which its capital is employed. The maximum number of participants in the plan period 2021–2023 is 150 key employees. The maximum number of gross shares (taxes included) that can be allocated is 3,700,000. The share rewards will be delivered in spring 2024, if the employment conditions and performance criterion is met.
Restricted Share Plan is used for a limited number of employees, i.e. key recruitments, exceptional performance, high potential, retention need, and other individual specific situations. The maximum number of gross shares (taxes included) that can be allocated is 250,000 shares for the plan period 2021–2023. The share rewards will be delivered in three installments, in spring 2022, spring 2023 and spring 2024, if the employment conditions are 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 status of the share plans at the end of 2020.
|Performance share plans, status on Dec 31, 2019||2019–2021||2020–2022||2021–2023|
|Number of participants||116||127||Max. 150|
|Maximum number of gross shares to be paid||1,991,738||2,903,702||3,700,000|
|Earning criteria||Return on operating capital compared to a peer group||Return on operating capital compared to a peer group||Return on capital employed as an absolute measure|
|Share delivery year||2022||2023||2024|
|Restricted Share Pool, status on Dec 31, 2020||Period 2018–2020||2019–2021||2020–2022||2021–2023|
|Number of participants||41||63||37||55|
|Maximum number of gross shares to be paid||97,000||194,200||161,900||250,000|
|Share delivery year||2021||2022||2023||2022, 2023, 2024|
The members of Outokumpu’s Leadership Team, including the CEO, are obliged 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.
For more information on the previous and ongoing share plans, please check our Remuneration statements.
Updated on March 2, 2021.