The Board of Directors nominates the CEO and his/her possible deputy and decides on the CEO's terms of service, including base salary, fringe benefits, pension benefits and incentive schemes. The Remuneration Committee of the Board determines and approves the terms of service, including salaries, bonuses, pension benefits and other benefits, of the Outokumpu Leadership Team members other than the CEO.
The compensation of the CEO and the members of the Leadership Team consist of base salary, fringe benefits, short-term incentives, share-based long-term incentives and pension arrangements. The total compensation is reviewed regularly by the Board of Directors. The review includes benchmarking the different components of total remuneration to market practices in corresponding positions.
The principles for remuneration include shareholder value creation as the underlying focus of the reward strategy, competitive remuneration, business strategy aligned incentives, and pay for performance.
On this pages and in our latest Remuneration Report we present how Outokumpu rewarded the Board members and the President and
CEO for 2024. The materialized remuneration is in line with the Remuneration Policy of the
governing bodies of Outokumpu, approved at the Annual General Meeting in 2024.
For 2024, the CEO remuneration was in line with the framework and principles set forth in
the Remuneration Policy. The remuneration of the employees follows the same principles,
which include shareholder value creation as the underlying focus of the reward strategy,
competitive remuneration, business strategy aligned incentives, and pay for performance.
In line with this last principle, no short-term incentives will be paid to management in 2025
for 2024 because of weak financial results.
Sustainability in all its aspects continues to be at the core of our operations. Safety has
been a target in all short-term incentive plans, including for the CEO, for many years. Since
2023, diversity has also been included as a target in the short-term incentive plan for top
leaders, though it does not apply to the CEO. CO2 emission reduction also remained a key
target in our long-term incentive program, the Performance Share Plan, in which the CEO
and close to 200 leaders participate.
Going forward, we will continue to review our remuneration framework to ensure it supports
value delivery for all our stakeholders.