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 members of the Leadership Team consist of base salary, fringe benefits, short-term incentives, share-based long-term incentives and pension arrangements. The Leadership Team members are also included in the share-based incentive plans for the Outokumpu management. No separate remuneration is paid to the members of the Leadership Team for membership of the Group’s internal governing bodies.
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.
The Annual General Meeting decides on the remuneration of the Board of Directors and the Board on the remuneration of the CEO. Find out more on the Board's and CEO's remuneration.
Key management in the table below includes nine (nine) members of the Outokumpu Leadership Team and eight (seven) members of the parent company Outokumpu Corporation’s Board of Directors.
| employee benefits for key management | ||
|---|---|---|
| 1,000 euros | 2025 | 2024 |
| Other Leadership team members | 4,624 | 4,677 |
| Post-employment benefits 1) | 669 | 614 |
| Share-based payments | 331 | 506 |
| Remuneration to the Board of Directors | 888 | 948 |
| Total | 6,512 | 6,745 |
1) Contains only supplementary pensions.
Pension benefits and terms of service for Leadership Team members
For the 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 some 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
The members of Outokumpu’s Leadership Team are expected to own Outokumpu shares they receive in the company’s share-based incentive programs corresponding to at least 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 that ownership recommendation.