CEO's remuneration

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.
Page last updated: 03.03.2023

Base salary and contract

The remuneration of the CEO consists of a base salary, benefits and an annually determined short-term incentive plan. In addition, the CEO participates in long-term incentives comprising performance share plans launched on a yearly basis.

The service contract of the CEO is valid until further notice. He is entitled to a severance payment of twelve (12) months, and the notice period is six (6) months for both parties. CEO Heikki Malinen has the right to retire at the age of 65. He participates in the Finnish TyEL pension system, and there is no supplementary pension plan at place.

Following the excellent results achieved since he took office, the CEO’s monthly gross base salary was raised by 16% to EUR 75,397 in April 2022, totaling EUR 900,322 including short-term benefits for the full year 2022. This reflects the market salary level for this type of responsibilities and this size of a company, and recognizes that the CEO performed well above expectations, bringing in record level results in 2021 and successfully de-risking the company.


Due in 2023 Paid in 2022
 Paid in 2021
Base salary and benefits1) N/A 900,322
Short-term incentives2) 871,388 1,064,700  0
Long-term incentives2) See long-term incentives tables below 0
Total remuneration N/A 1,965,022 795,840 

1) Excluding post-employment benefits.
2) Paid incentives are entered in the table on the year when they are paid. Usually, they relate to the performance in the previous year(s).

Short-term incentives

In 2022, the CEO’s short-term incentive earning opportunity remained unchanged at 50% of the annual gross base salary on a target level and 100% on a maximum level. The short-term incentive to be paid in 2023 reflects the achievement of the pre-defined targets for 2022: Group adjusted EBITDA, safety, and strategy implementation. Group adjusted EBITDA broke new record levels. Total Recordable Incident Frequency Rate (TRIFR) reached the ambitious target of 2.0, which is exceptional in this industry. The first phase of the strategy was successfully completed ahead of time, bringing significant improvement in commercial excellence, cost and capital discipline and lean and agile organization, as well as achieving both its financial targets, EUR 250 million EBITDA run-rate improvement and net debt to EBITDA ratio to below 3.0. Altogether, EUR 871,388 of short-term incentives will be paid to the CEO in spring 2023 for 2022, which is 95% of the maximum.

Earning opportunity in % of gross annual base salary1)  Payout, %   Payout, €
 Threshold      0.5%  4,586
 Target       50%  458,625
 Maximum       100%  917,250
Performance measures in 2022 Weight Achievement Payout, %  Payout, €
Group Adjusted EBITDA in 2022 80% Maximum 100%  733,800
Group safety: Total Recordable Incident
Frequency Rate = 2.0
10% Target 50%  45,863
Strategy implementation: EUR 250 million EBITDA run-rate improvement and net debt to EBITDA ratio to below 3.0. 10%  Maximum  100%  91,725

1) Prorated to the different salary levels during 2022, i.e., 3/12 * 819,000 + 9/12 * 950,000 = 917,250 €. The actual base salary paid during 2022 differs from this prorated annual base salary because of accrued holiday pay not yet paid.

Long-term incentives

The CEO’s long-term incentive earning opportunity is at most 150% of the annual gross base salary at the time of payment. In 2022, the CEO was not paid any long-term incentive, since the threshold level of the Performance Share Plan 2019–2021, return on operating
capital compared to the peers, was not met. However, for the Performance Share Plan 2020–2022, the same performance target was reached, and therefore, the executives participating in the plan will receive 100% of the shares granted at target level. For the CEO, that means 130,451 gross shares.

Share-based remuneration of the CEO
   Due in 2023  Paid in 2022   Paid in 2021 
Long-term incentive plan  2020-2022 2019–2021 2018–2020
Maximum number of shares granted (gross)  195,677 97,000 43,000
Grant date  May 15, 2020 May 15, 2020 May 15, 2020
Number of shares earned (gross) 1)  130,451 0 0
Number of shares delivered  71,902 0 0
Share delivery date  February, 2023
Share price at delivery  Not known yet

1) Paid incentives are entered in the table on the year when they are paid. Usually, they relate to the performance in the previous year(s).

Earning opportunity PSP 2020–2022 PSP 2021–2023 PSP 2022–2024 
Threshold1) 22% 25% 25% 
Target1) 44% 50% 50% 
Maximum1)  67% 75% 75% 
Grant2) 130,451 168,800 85,300 
 Grant date May 15, 2020   March 15, 2021  March 15, 2022 
Payout year 2023 2024 2025 
Performance measures  
Performance criteria Return on operating capital compared to a peer group(Q4/2020–Q3/2022) Return on capital employed(2023) Return on capital employed,
average 2022–2024 
Weight 100% 100% 80% 
Performance criteria CO2 emissions per ton of crude steel, 2024 SBTi target 
 Weight –  –  20% 

1) Expressed in percentage of annual gross base salary at the time of grant. In PSP 2020–2022, the levelswere prorated to time in position during the performance period: 32/36 months.

2) Number of gross shares at target level. The number of shares was determined using the share price at thetime of plan approval: EUR 2.66 for PSP 2020–2022, EUR 2.31 for PSP 2021–2023, and EUR 5.57 forPSP 2022–2024

Share ownership recommendation

The members of Outokumpu’s Leadership Team, including the CEO, 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 (50%) of the net shares received from the share-based incentive programs must be used to fulfil that ownership recommendation.

 Shareholding of the CEO    
   2022   2021
Shareholding recommendation 100% of individual annual gross base salary 100% of individual annual gross base salary
Shares owned on December 31   45,459   45,459
Closing share price on December 31, €  4.73  5.50
Value of the shares on December 31, €   215,021   250,025
Value of the shares in % of annual base salary   23%   31%


More information on the CEO's past remuneration, please check our latest Remuneration report or earlier Remuneration statements

Read more

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

Remuneration of the Leadership Team
Share-based incentive programs
Members of the Leadership Team
Management's shareholding