Trouble in Finland: Nokia’s CEO Elop refuses to reduce his $25M payday

Stephen Elop

Stephen Elop

Nokia’s soon to be ex-CEO, Stephen Elop, is reportedly refusing to reduce the stipulated US$25-million payday he is to be awarded by the company for managing to sell it off. According to ZDnet, the company has begged Elop to consider reducing the amount.

Microsoft announced its plans to buy Nokia’s handset business and license a number patents earlier this month. During the announcement Microsoft also said that Elop would step down as CEO of Nokia and head to Microsoft to run its devices team and studios work.

The payout, which is supposed to go to Elop if and when the Microsoft deal is finalized, is apparently different from what his predecessors were offered according to proxy materials that were made public on September 19.

According to Nokia, Elop was entitled to 18 months of his salary, something Nokia refers to as a “management short term cash incentive” worth US$5.7-million. The company also said he was entitled to share awards worth US$19.7-million, the crucial difference in his predecessors’ contracts.

The full amount which comes to US$25-million is divided between Microsoft and Nokia in a 70/30 split respectively. But it seems the Finnish handset maker would rather the amount was lower and Elop is not budging.

According to Finnish paper Helisingin Sanomat, Elop is refusing to consider Nokia’s request on the account that he is getting a divorce.

“This is a very unfortunate thing about the case, which, moreover, raises a lot of emotions,” Nokia’s chairman, Risto Siilasmaa said, according to the report in the Finnish paper.

The whole issue has proved quite embarrassing for Nokia: it has made global news headlines and many people in Finland are reportedly not happy with the sale or Elop.



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