Compensation and benefits
The performance-based short-term incentive payable to the members of the Leadership Team based on the targets set for 2019 was based on the achievement of EBITDA, net debt, safety, and individual objectives. The maximum payment varied between 50% and 80% of the annual base salary in line with local market practices for similar positions.
The Leadership Team members are also included in the share-based incentive plans for Outokumpu management. No separate remuneration is paid to the Group CEO or members of the Leadership Team for membership of the Group’s internal governing bodies.
|Salaries and rewards paid in 2019, EUR|
|Salaries and employee benefits||Performance/project-related bonuses 1)||Share-based incentives 2)||Total|
|CEO Roeland Baan||1,074,495||347,782||1,112,203||2,534,480|
|Deputy to the CEO, until 28 February 2019||79,292||162,657||141,700||420,911|
|Other Leadership team members||3,129,923||1,167,006||1,504,688||5,801,617|
1) Actual Short Term Incentive payout.
2) Gross, including the value of the shares on the date of delivery and taxes.
|Shares owned by the Leadership team members, December 31, 2019|
Outokumpu publishes all manager transactions as stock exchange releases per MAR regulation.
Pension benefits and terms of serviceFor 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 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.
According to the share ownership plan of the Outokumpu Group, the members of the Leadership Team are obliged to own Outokumpu shares received under share-based incentive programs to the value of their annual gross base salary. Half (i.e. 50%) of the net shares received from the share-based programs must be used to fulfil the above ownership requirement.
Guarantees and business relationships
Outokumpu did not provide any guarantees or other similar commitments on behalf of members of its Board of Directors in 2019.
No members of the Board of Directors or the Leadership Team or closely related persons or institutions have any significant business relationships with the Group.