The President and CEO’s remuneration consists of base salary, taxable benefits, share-based incentive and annual short-term incentive programs determined by the Board, based on the company’s key targets.

Base salary, benefits and incentives

The remuneration of the President and CEO consists of base salary, benefits, and an annually determined short-term incentive plan. The CEO's annual base salary is 780,000 euros. In addition, the CEO participates in the long-term incentive arrangement of the company consisting of individual performance share plans.

The Performance Share Plans are covered by the following share ownership requirement applied by Outokumpu Group: 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 (50%) of the net shares received from the share-based incentive programs must be used to fulfil the above ownership requirement. This requirement also applies to CEO Malinen.

Pension benefits and terms of service

CEO Malinen has the right to retire at the age of 65 and he participates in the Finnish TyEL pension system and there are no supplementary pension plans in place. The service contract of the CEO is valid until further notice.

The CEO is entitled to a severance payment of twelve (12) months, and the notice period is six (6) months for both parties.

The table below describes the remuneration of the CEO paid in 2020 to the current CEO Heikki Malinen. More information on the CEO's past remuneration, please check our latest Remuneration report or earlier Remuneration statements

 Remuneration of the CEO paid in 2020  Heikki malinen 1)
 Base salary and benefits   487,010
 Short-term incentives 2)  0
 Long-term incentives 3)  0
 Share portion  
 Cash portion  
 Total remuneration  487,010
 Share of fixed pay of total remuneration   100%
 Share of variable pay of total remuneration  0%

1) Heikki Malinen was appointed as President and CEO as of May 16, 2020 until when Roeland Baan acted as the CEO.
2) Paid short-term incentives have been entered in the table on the year when they have been paid. They usually relate to the performance in the previous year.
3) Long-term incentives are paid partly in shares and partly in cash, to cover for income taxes and other taxes arising from the reward.

 Remuneration of the CEO not yet paid but due based on the year 2020  
Short-term incentives  
Remuneration due based on the achievement of STI performance measures in 2020
Long-term incentives  
Number of gross shares due based on the achievement of PSP 2018–2020 performance

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Read more on the remuneration of the Leadership Team, share-based incentive programs and members of the Leadership Team.