Leadership team remuneration

The Remunaration Committee determines the the terms of service and benefits of the Outokumpu Leadership Team members other than the company's CEO. 

Share-based incentive programs

Outokumpu’s Board of Directors has confirmed that sharebased incentive programs are part of the incentive and commitment scheme for the company’s key personnel. The objectives are to reward key personnel for good performance and thereby support Outokumpu’s strategy, as well as to direct management attention toward 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.

For the 2018 financial year, the performance-based short-term incentive payable to the members of the Leadership Team in addition to their base salary and employee benefits will be based on the achievement of EBITDA, occupational safety, delivery performance and individual objectives. The maximum incentive payment varies between 50% and 100% of the annual base salary in line with local market practices for similar positions.

No separate remuneration is paid to the members of the Leadership Team for membership of the Group’s internal governing bodies.

Pension benefits and terms of service

The service contract of CFO de la Camp, who is also deputy to the CEO, can be terminated by both parties with six months’ notice. To the extent that the service contract would be terminated by the company, other than for a cause without notice or with an ordinary notice due to misconduct, the CFO would receive additional compensation equivalent to 12 months’ salary.

For the other 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 they 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.  

All Outokumpu share-based incentive programs

SALARIES AND REWARDS PAID IN 2017, EUR

 

 

Salaries and employee benefits

Performance/
project-related bonuses

Share rewards 1)

Total

CEO Roeland Baan

1,073,219

947,629

2,083,469

4,161,239

Deputy to the CEO 

440,000

168,000

491,835

1,099.835

Other Leadership team members 2)

2,742,872

2,988,248

2,759,509

8,472,629

1) Gross, including the value of the shares on the day of delivery and taxes..
2) Erkkilä Jan 1–31, 2017; Tahvanainen Jan 1–February 28, 2017 and Kaukiainen March 1–Dec 31, 2017.

 

SHARES OWNED BY THE LEADERSHIP TEAM MEMBERS, MARCH 2018

Member

Shares

Roeland Baan

774,869

Christoph de la Camp

171,720

Liam Bates

79,486

Maciej Gwozdz

101,324

Jan Hofmann

78,160

Reeta Kaukiainen

0

Olli-Matti Saksi

176,709

Johann Steiner

101,069

Kari Tuutti

118,434

Michael S. Williams

192,987

Total

1,794,758


Outokumpu publishes all manager transactions as stock exchange releases per MAR regulation. The table above is updated based on the stock exchange releases.

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Aug 09, 2018