Nokia appoints Suri as CEO, plans to spend billions of Microsoft cash

Nokia appoints Suri as CEO, plans to spend billions of Microsoft cash

Summary: Nokia has picked the head of NSN Rajeev Suri as its new chief exec, and detailed how it will spend some of the money earned from the sale of its devices and services business to Microsoft.

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TOPICS: Networking, Nokia, EU
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As expected, Nokia has appointed Rajeev Suri as its new president and CEO.

Rajeev Suri, Nokia CEO
Rajeev Suri. Image: Nokia

Following the €5.4bn sale of its devices and services unit to Microsoft last week, the rest of Nokia — its networking, mapping and Technologies units — will be headed up by Suri.

Until now, Suri had been CEO of NSN. Having joined Nokia back in 1995, Suri has led its NSN networking business since 2009, overseeing a major restructuring programme that took €1.5bn out of annual operating expenses, cut its workforce by around a quarter, and saw NSN divest itself of several business units not considered in tune with its "strategic focus".

Suri will take up the role of CEO from 1 May, taking over from interim CEO Risto Siilasmaa, who was filling in after Stephen Elop stepped down to lead the devices team at Microsoft.

"As Nokia opens this new chapter, the Nokia Board and I are confident that Rajeev is the right person to lead the company forward," said Siilasmaa, who will return to his role of chairman.

"He has a proven ability to create strategic clarity, drive innovation and growth, ensure disciplined execution, and deliver results. We believe that his passion for technology will help ensure that Nokia continues to deliver innovations that have a positive impact on people's lives."

Following the closing of the Microsoft deal on Friday, Nokia will hand over a series of dividends to its shareholders: €800m of ordinary dividends over this year and next, and a special dividend of €0.26 per share, or around €1bn in total, scheduled for 2014.

It's also planning to put the Microsoft cash towards cutting debt by €2bn in 2016, and repurchasing €1.25bn of shares next year.

Along with a number of execs that will leave Nokia to join Microsoft, Nokia announced a series of other departures. Its chief legal officer Louise Pentland, HR chief Juha Äkräs, and chief development officer Kai Öistämö are all leaving to "pursue opportunities outside Nokia".

Hans-Jürgen Bill joins the company as EVP of HR, Barry French EVP of marketing, and Maria Varsellona as chief legal officer, from 1 May.

With the devices and services unit gone, Nokia will be composed of three units: its mapping business Here, its patents and R&D arm known as Technologies, and its networking unit. The largest of the three, the networking business was historically known as NSN, but will in future just use the Nokia name.

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Topics: Networking, Nokia, EU

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  • And then...

    The remaining 400 million in 2016 to acquire Jolla.

    The 2 billion from the patent licencing deal to ramp up capacity 2016-18.

    Release an up to date device running a modernised version of Meego in 2019.

    Replace Microsoft as the second largest phone platform in the world, with a whopping 10% global market share, in 2024. (Apple of course having been acquired by Google in 2018 after the shift to a phablet form factor in 2014 killed the iPhone stone dead)
    Daishi83
    • Oh and I forgot.

      Regain crown as the largest phone manufacturer in 2030 after the compensation pay outs to the families of Google Glass users, killed by the massive brain tumors the devices caused, bankrupt the advertising giant in 2027 and the subsequent 'G hysteria' kills all demand for Android.
      Daishi83
      • Will anyone even care about a phone in 2030?

        nt
        thekman58