Compensation and benefits
Key management includes the members of the Outokumpu Leadership Team and the members of the parent company Outokumpu Oyj’s Board of Directors. President and CEO, CFO, Presidents of the core business areas and business lines, Chief Procurement Officer, Chief Technology Officer and Chief Human Resources Officer are part of the Outokumpu Leadership Team. In June 2023, the Chief Procurement Officer was added to the Leadership Team, bringing the number of its members from 8 to 9.The Leadership Team members are also included in the share-based incentive plans for the Outokumpu management. No separate remuneration is paid to the members of the Leadership Team for membership of the Group’s internal governing bodies.
Find out more on the Board's and CEO's remuneration.
| employee benefits for key management | ||
|---|---|---|
| 1,000 euros | 2023 | 2022 |
| Other Leadership team members | 6,438 | 6,404 |
| Post-employment benefits 1) | 240 | 233 |
| Share-based payments | 447 | 2,331 |
| Remuneration to the Board of Directors | 918 | 898 |
| Total | 8,043 | 9,866 |
1) Contains only supplementary pensions.
Pension benefits and terms of service
For 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 some 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.
Other terms
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
No members of the Leadership Team or closely related persons or institutions have any significant business relationships with the Group.