Outokumpu announces a share incentive scheme for the CEO related to the Inoxum transaction
The Board of Directors of Outokumpu Oyj has approved the granting of 25 000 Outokumpu shares as a special incentive scheme to the Group's CEO, Mika Seitovirta. Outokumpu is in the process of preparing a rights issue in connection with the implementation of the strategically important Inoxum acquisition announced on 31 January 2012 and the CEO has committed to fully subscribe all the shares which the reward shares entitle to.
The aim of the scheme is to retain the CEO as he has a central role in the successful implementation of the acquisition process and the related integration. The reward shares will be delivered to the CEO no later than 29 February 2012. Outokumpu will pay the taxes and any social security contributions related to the reward shares.
The reward shares are subject to a restriction according to which the reward shares may not be transferred or in any other manner disposed of before 31 March 2015. The reward shares are also subject to a restriction according to which the CEO forfeits the reward shares if his service is terminated or a notice for the termination of the service is given prior to the end of the above restriction period. The reward shares are, in addition, subject to a claw-back provision during the above restriction period.
The reward shares are subject to the share ownership guideline applied by the company to the executive management. The company's other limitations on variable pay will be applied in connection with the delivery of the reward shares.
The reward shares will consist of Outokumpu treasury shares and will, therefore, have no diluting effect.