The Board of Directors nominates the CEO and his/her possible deputy and decides on the CEO's terms of service, including base salary, fringe benefits, pension benefits and incentive schemes. The Remuneration Committee of the Board determines and approves the terms of service, including salaries, bonuses, pension benefits and other benefits, of the Outokumpu Leadership Team members other than the CEO.
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.
In 2022 we introduced a CO2 emission reduction target in our long-term incentive program, the Performance Share Plan. We also agreed on long-term ambitions for diversity, equity and inclusion and added a diversity target for managers in our short-term incentive plan for 2023, alongside safety which is still a top priority. Going forward, we will continue to review our remuneration framework to ensure they support value delivery for our stakeholders.