Adolf Koppensteiner
MERCER INTERNATIONALAbout Adolf Koppensteiner
Adolf Koppensteiner, age 64, is Chief Operating Officer, Pulp Products at Mercer International (MERC), having served as COO since January 1, 2018 and COO, Pulp Products since August 2022; he joined Mercer in 2007 and previously led operations at Rosenthal and Stendal mills . Company performance during 2024 included Operating EBITDA of $243.7 million (up from $17.5 million in 2023), total revenues of $2,043.4 million, and year-end share price of $6.50; MERC’s FY2024 TSR value of an initial $100 investment was $59.84 versus peer group $86.62, highlighting a mixed shareholder return backdrop despite operational improvement . His compensation structure emphasizes pay-for-performance via STIP and PSU-based LTIP linked to Operating EBITDA, safety/ESG, productivity/costs, and multi-year ROAA and relative TSR outcomes .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Mercer International – Rosenthal mill | Mill Manager | 2007 onward | Led mill operations, engineering and optimization initiatives |
| Mercer International – Stendal mill | Managing Director, Operations & Technical | Since Oct 2013 | Oversaw operations/technical functions at flagship pulp mill |
| Mercer International (Global) | Chief Operating Officer | Jan 1, 2018 – Aug 2022 | Enterprise-wide operational leadership across assets |
| Mercer International (Pulp) | COO, Pulp Products | Since Aug 2022 | Focused operational leadership on pulp segment |
| Kvaerner Central Europe | Managing Director (Sales & Service) | ~15 years (pre-Mercer) | Built deep pulp/paper engineering and project/start-up expertise |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed | — | — | No current public company board roles disclosed for Koppensteiner |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 436,174 | 465,873 | 483,272 |
| Target Bonus (% of Salary) | 75% (policy) | 75% (policy) | 75% (policy) |
| Actual Bonus Paid ($) | 411,071 | 202,985 | 286,864 |
| Total Compensation ($) | 1,290,097 | 1,118,702 | 1,223,169 |
| 2025 Base Salary ($) | — | — | 500,670 (effective Feb 2025; +3.6% YoY) |
Notes: 2024 “All Other Compensation” included auto ($22,735), retirement plan contributions ($60,933), and housing allowance ($11,037; €10,200 annually per agreement) . Change in pension value for 2024 was -$903, reflecting notional interest mechanics of the European program .
Performance Compensation
2024 Short-Term Incentive Plan (STIP) – Component Outcomes
| Component | Weight (% of STIP) | Target Definition | 2024 Payout (% of Target) |
|---|---|---|---|
| Operating EBITDA | 40% | Operating EBITDA vs STIP Target EBITDA (mid-cycle pricing calibration) | 59% |
| Safety (TRIR) | 10% | TRIR vs threshold (min/target/maximum with interpolation) | 112% |
| GHG Emissions (Fuel Oil Intensity) | 5% | Corporate fuel oil intensity vs targets | 109% |
| Productivity | 15% | Weighted by mill: pulp production; sawmill productivity/hour; mass timber orders/executions | 51% |
| Costs/Profitability | 10% (pulp mills only for Koppensteiner) | Weighted cash production cost/tonne (pulp) vs targets (interpolated) | 113% |
| Individual Goals | 20% | Annual performance goals approved by HRC | 100% |
| Total STIP Achievement | — | Weighted sum of component outcomes | 79% of bonus target |
Resulting cash bonus of $286,864 (59% of 2024 base salary), consistent with 79% achievement on a 75% target bonus level .
Long-Term Incentive Program (LTIP) – PSUs
| PSU Cohort | Performance Period | Metric Weighting | Target Units (#) | Max Units (#) | Grant Date Fair Value ($) | Vesting Timing/Outcome |
|---|---|---|---|---|---|---|
| 2024 PSUs | Jan 1, 2024 – Dec 31, 2026 | 50% ROAA; 50% Relative TSR vs peer group | 46,775 | 93,550 | 718,464 (at $7.68/share; max assumed for ASC 718 per table) | Eligible to vest in 2027 based on LTIP criteria |
| 2022 PSUs | Jan 1, 2022 – Dec 31, 2024 | 50% ROAA; 50% Relative TSR | 27,442 | 54,884 (implied) | — | Vested 0%; ROAA -0.81% and TSR 14th percentile → 0% payout |
PSU performance scales: ROAA <2% → 0%; 2–4.99% → 50–99%; 5–7.99% → 100–199%; >8% → 200%; TSR <25th → 0%; 25–49th → 50–99%; 50–75th → 100–199%; >75th → 200% .
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Common shares beneficially owned | 41,344 shares |
| Ownership as % of outstanding | <1% (company denotes “*” less than 1%) |
| Unvested PSU balance at target (across 2022–2024 cohorts) | 76,651 units (market value $498,232 at $6.50) |
| Outstanding options | None disclosed for NEOs; no options shown in awards table |
| Shares covered by outstanding awards (max 200% assumption) | 264,494 (Koppensteiner) |
| Stock ownership guidelines | NEOs: 3x base salary; CEO: 5x; compliance window 3 years (NEOs) |
| Hedging/pledging policy | Hedging prohibited; executives cautioned against pledging/margin accounts |
| Clawback policy | Recovery of erroneously awarded incentive comp on restatement; misconduct forfeiture/clawback provisions |
Employment Terms
| Term | Detail |
|---|---|
| Current role | COO, Pulp Products (since Aug 2022); prior COO since Jan 1, 2018 |
| Employment history at MERC | Joined 2007; Rosenthal Mill Manager; Stendal Managing Director (Ops/Technical) since Oct 2013 |
| Notice period | 12-month notice by either party; no individual change-of-control provision in his employment agreement |
| Severance (termination without cause, as of Dec 31, 2024) | Cash severance $959,050; PSU acceleration $230,809; total $1,189,859 (valued at $6.50/share) |
| Change-of-control (CIC) — plan treatment | 2022 Stock Incentive Plan uses double-trigger; upon qualifying termination within 12 months of CIC, PSUs vest at 100% of target; options/RSUs fully vest |
| CIC scenario (as of Dec 31, 2024) | Cash severance $959,050; performance award acceleration $676,605; total $1,635,655 (valued at $6.50/share) |
| Retirement program | European defined contribution-type; 2024 employer contributions $60,933; notional interest rate 4.07% |
Investment Implications
- Pay-for-performance alignment is intact: 2022 PSUs paid 0% given ROAA and TSR underperformance, while 2024 STIP paid 79% on blended targets (notably strong safety and GHG outcomes offsetting lower EBITDA/productivity), indicating disciplined incentive outcomes tied to operations and ESG metrics .
- Retention risk appears moderate: a 12-month notice period with meaningful but not outsized severance and double-trigger CIC terms (100% target vesting) reduce flight risk while avoiding single-trigger windfalls; no options overhang and prohibited hedging further align interests .
- Near-term insider selling pressure is limited: equity is primarily in multi-year PSUs (76,651 target PSUs unvested) with 2024 cohort vesting in 2027, and no disclosed options; beneficial ownership is modest (<1%), lowering collateral-related risks given anti-pledging policy .
- Operational leverage to incentives: Koppensteiner’s STIP weighting emphasizes Operating EBITDA, productivity, and pulp cost efficiency; with 2024 Operating EBITDA rebounding to $243.7 million and costs down 7%, sustained execution on mill efficiency and safety/ESG can support future LTIP outcomes and cash bonus realization despite 2024 share price decline (closing $6.50; TSR $59.84) .