Feeds

Ex-CEO Elop's plunder to total $25m in voyage from Nokia to Microsoft

Sets sail for Redmond with chests filled with Finnish booty

Seven Steps to Software Security

Outgoing Nokia CEO Stephen Elop will receive compensation and bonuses totaling approximately $25.4m as he departs the company for his new position at Microsoft.

The payout was revealed in proxy materials for the Finnish firm's "Extraordinary General Meeting" to be held on November 19, during which shareholders are expected to approve the sale of Nokia's devices and services business to Microsoft.

Assuming that deal goes through, the 49-year-old Elop, a former Microsoft executive, will return to Redmond – he maintained a residence there throughout his time at Nokia, and his family never moved to Finland – but not without lining his pockets first.

Under Elop's service contract with Nokia, he is due a one-time payment equivalent to 18 months of his base salary plus a "management incentive", totaling $5.5m. In addition, he will receive roughly $19.9m in stock awards (actual value to be determined), only 30 per cent of which will be paid out by Nokia; Microsoft will cover the rest.

This windfall comes just three years after Elop signed on as Nokia's CEO, a move that netted him another $6.2m in bonuses, plus $1.1m to cover fees and legal expenses. If you're keeping track, this means that once the sale to Microsoft closes, Elop will have been paid a total of $10.9m per year just to move offices, not including his annual compensation and bonuses.

By comparison, Olli-Pekka Kallasvuo, the man Elop replaced as chief exec, left Nokia with around $5.8m in severance pay and 100,000 Nokia shares – shares that are now worth 34 per cent less than when Elop took the corner office in 2010.

Many critics blame Elop for Nokia's flagging fortunes, particularly his controversial decision to bet the company's smartphone business on Microsoft's unpopular Windows Phone mobile OS. Teams working on non-Windows software got the axe under his tenure, even as Nokia's share of the global smartphone market dwindled into single digits.

Rumors that Elop was grooming Nokia for an eventual sale to Microsoft began shortly after he joined the company, but they were routinely pooh-poohed. In June, The Wall Street Journal reported that Microsoft had walked away from acquisition talks with Nokia and wasn't likely to try again. The two companies reached an agreement three months later, and the deal is expected to close at the shareholders' meeting in November.

As part of the sale, Elop is expected to take up a new position "pursuant to the terms of an employment agreement with Microsoft." He is widely believed to be a front-runner for the chief executive seat, following Steve Ballmer's announcement that he plans to step down within the next 12 months.

What Microsoft's board might be willing to offer Elop the job of filling Ballmer's sweaty shoes, your Reg hack can only speculate. ®

Boost IT visibility and business value

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.