Share-based incentive programs

Outokumpu’s Board of Directors has confirmed that share-based 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, and to direct management attention towards 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. Outokumpu's share-based programs consist of the Performance Share Plan (PSP) and Restricted Share Pool (RSP). 

Outokumpu has currently no active stock option programs.

Performance Share Plan and Restricted Share Pool

The Performance Share Plan includes an earning criterion and has a maximum number of participants for each plan of 150. It is part of the regular compensation of top executives. Earning criteria for current plan periods are given in the table below. 

The Restricted Share Pool does not have any specific earning criteria and it is used for a limited number of employees, for key recruitments, exceptional performance, high potential, retention need and other individual specific situations. 

Plan periods

Outokumpu has currently three ongoing plan periods for the Performance Share Plan and Restricted Share Pool: 2020–2022, 2021–2023 and 2022–2024, Performance Share Plan and Restricted Share Pool. The latest plan period for 2019–2021 ended at the end of 2021. 

The share rewards will be delivered in next spring after the end of each plan period if the employment conditions and performance criterion is met. Upon delivery, applicable taxes will be deducted from gross shares, and the remaining net value will be paid to the participants in Outokumpu shares.

The tables below include the participants, maximum number of gross shares and earning criteria of these share plans. 

Performance share plans  2019–2021  2020–2022 2021–2023   2022–2024
Number of participants 96 111  113 109 
Maximum number of gross shares to be paid  1,991,738 2,903,702 3,700,000  3,700,000 
Earning criteria Return on operating capital compared to a peer group Return on operating capital compared to a peer group Return on capital employed as an absolute measure Return on capital employed and emission reduction target according to the Science Based Targets initiative
Share delivery year  2022 2023  2024 2025 

 

Restricted Share Pool  2019–2021 2020–2022   2021–2023  2022–2024
Number of participants 56 35 62 65 
Maximum number of gross shares to be paid   194,200 161,900 250,000  500,000
Share delivery year  2022  2023  2022, 2023, 2024  2023, 2024 2025

 

The Restricted Share Plan (RSP) 2022–2024 includes a one time increase of share budget to maximum 500,000 gross shares to cater for an extra retention plan for up to 5-6 selected management positions with highest retention risk. 

Ownership requirement

The members of Outokumpu’s Leadership Team, including the CEO, are expected to own Outokumpu shares received under the company’s share-based incentive programs corresponding to the value of their annual gross base salary. Half of the net shares received from the share-based incentive programs must be used to fulfil this ownership requirement. 

Share rewards in the spring of 2022

Outokumpu’s Board of Directors has approved the share rewards in Outokumpu’s share-based incentive program, Restricted Share Pool.

The total number of shares will be delivered to the participants of the Restricted Share Pool’s following plan periods by the end of April 2022:

• RSP 2019–2021: the number of gross shares is 151,000
• RSP 2021–2023: the number of gross shares is 75,532 (the first instalment of three)

Outokumpu will use its treasury shares for the reward payments, which means that the total number of shares of the company will not change.

For the Performance Share Plan 2019–2021, the targets were not met, and therefore, no share rewards were paid to the participants.

 

For more information on the previous and ongoing share plans, please check our Remuneration statements.  

 

Updated on February 8, 2022.