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 | 0 |
| Long-term incentives | |
| Number of gross shares due based on the achievement of PSP 2018–2020 performance measures |
0 |