Outokumpu's share-based programs consist of the Performance Share Plan (PSP) and Restricted Share Pool (RSP). The objective of the programs is to reward selected employees for good performance which supports Outokumpu's strategy, to engage them and to form part of a competitive compensation package. Outokumpu has currently no active stock option programs.
Plan periods for share-based programs 2020–2022
The Board of Directors has approved the commencement of Outokumpu’s share-based programs for the period 2020–2022, Performance Share Plan and Restricted Share Pool. The plans commence at the beginning of 2020.
The earning criterion of the Performance Share Plan for this period measures Outokumpu's profitability and the efficiency with which its capital is employed compared to a peer group. The maximum number of participants in the plan period 2020–2022 is 150 key employees. The maximum number of gross shares (taxes included) that can be allocated is 3,700,000.
Restricted Share Plan is used for a limited number of employees, i.e. key recruitments, exceptional performance, high potential, when retention need, other individual specific situations. The maximum number of gross shares (taxes included) that can be allocated is 250,000 shares for the plan period 2020–2022.
The share rewards will be distributed in spring 2023, if the employment conditions and performance criterion are met. Applicable taxes will be deducted from gross shares, and the remaining net value will be delivered to the participants in Outokumpu shares.
Matching Share PlanThe Board of Directors of Outokumpu established in 2016 a Matching Share Plan program for key management for the years 2016–2020 to emphasize shareholder value creation, enforce an ownership culture and to incentivize the achievement of the 2020 vision.
According to the plan, the participants have invested an amount corresponding to 30–120% of their annual gross base salary into Outokumpu shares. Outokumpu will match each share acquired by the participant with two gross shares from which the applicable taxes will be deducted and the remaining net number of shares will be delivered to the participant. The matching shares are delivered in four instalments at the end of 2017, 2018, 2019 and the final being delivered in 2020. To receive the matching shares, the participants are required to keep all of the shares they have acquired until the vesting of each matching share tranche. Outokumpu uses its treasury shares for the reward payments, so the total number of shares of the company will not change.