Nokia's Elop to get $25 million as part of Microsoft acquisition deal

Nokia's Elop to get $25 million as part of Microsoft acquisition deal

Summary: Outgoing Nokia CEO Stephen Elop is set to get $25 million in salary and stock as part of the deal via which Microsoft is acquiring Nokia's handset business.

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Nokia's outgoing CEO Stephen Elop will get $25 million if and when Microsoft receives regulatory approval to acquire Nokia's handset business.

Nokia Elop $25 million Microsoft acquisition deal

The new figure was disclosed in proxy materials made public on September 19 for Nokia's extraordinary general meeting regarding the Microsoft deal, as noted by the Financial Times. That meeting is set to take place November 19.

Elop's payout includes base salary and management incentives of $5.5 million (EUR 4.1 million) and s$19.7 million (EUR 14.6 million) in stock awards, according to the proxy. Microsoft will pay 70 percent of this amount, with Nokia paying the other 30, the proxy states.

Microsoft announced plans to buy Nokia's handset business and license a number of its key patents on September 3. At that time, Nokia and Microsoft announced that Elop would step down as Nokia's president and CEO and return to Microsoft, once the deal was finalized.

Elop will be running an expanded devices team at Microsoft, which will include all of Microsoft's current Devices and Studios work, which is currently under Executive Vice President Julie Larson-Green. Other Nokia executives will join Elop's team, including smart devices chief Jo Harlow, operations boss Juha Putkiranta, feature phones director Timo Toikkanen, and sales and marketing vice president Chris Weber.

It's worth noting Elop is considered one of the candidates for the CEO job at Microsoft. Current CEO Steve Ballmer announced he will be retiring from that role between August 2013 and August 2014. 

Before joining Nokia as CEO in 2010, Elop worked at Microsoft, where he ran the Information Worker, Microsoft Business Solutions/Dynamics and Unified Communications Groups Businesses. He joined Microsoft in January 2008 from Juniper Networks where he was Chief Operating Officer.

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Topics: Mobility, Microsoft, Nokia

About

Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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75 comments
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  • ahahha...

    I hope the acquisition of Nokia & Microsoft work flawlessly before the end of this year. :D
    Anonymous1511
  • It's amazing the rewards you get

    as a reward for failure.
    Nokia on top, Elop Takes over, Nokia nosedives and get bought out, Elop pockets $25 mil and a cushy number as MS.
    Awesome work if you can get it.
    Boothy_p
    • Well Nokia was struggling even before Elop joined

      Elop only extended its life.
      Ram U
      • Can you give any objective indication of that?

        I can show a few graphs (many actually) of Nokia going down slowly that turned into a free fall after Elop.
        I still have to find an important objective indicator showing that Elop indeed extended Nokia's life.
        AleMartin
        • No objective indicators whatsoever

          Because Elop is actually getting the $$$ as a reward for the successful "cheap" acquisition. Come on, people, don't be so blind - he was set there to bring Nokia on a silver plate to Microsoft, slick as he is... I wouldn't offer him even a cup of coffee, next thing he is charging me for the burning hot fluid.
          moodjbow
          • I will post some numbers

            Let's look at how "terrible" was 2010 for Nokia and smartphones - 2010 results were for Elop the clear sign that Nokia was sinking.
            Q1 - 21.5M smartphones
            Q2 - 24M
            Q3 - 26.5M
            Q4 - 28.3M

            Elop arrived in September 2010, releasing the "burning memo" in February 2011.

            Let's see how it was the year of 2011 for Nokia:
            Q1 - 24,2M smartphones
            Q2 - 16.7M
            Q3 - 16.8M
            Q4 - 19.6M

            In the Q2 of 2013 Nokia sold 7.5M smartphones. In Q1 2009 they sold 13.7M.
            Global smartphones sales in Q1 2009 were 35M, in Q2 2013, 225M.

            (most data coming from allaboutsymbian)
            AleMartin
          • How about the year before?

            Do you have the Q1,Q2,Q3,Q4 numbers prior to 2010? It would be interesting to see if Nokia was already sinking but the rate at which it was sinking could be the point of discussion.

            Nevertheless I need to commend Nokia for coming up with innovative and eye catching phones. MS needs it big time.
            pingsatish
          • The year before

            In 2009 NOKIA sold 67.8 million smart devices
            in 2010 they sold 100.3 million smart devices
            That's a 48% increase.

            A large part of that increase was in China, now the world's largest smartphone market and one where NOKIA has become insignificant.

            China Mobile, a carrier bigger than all North Amercian carriers combined, was a member of the MeeGo working group. When Elop killed MeeGo he effectively gave them the finger.

            In the same time frame Elop has been NOKIA's CEO Xiaomi has gone from zero to being valued higher than Microsoft are paying for NOKIA and that's based on their success in the Chinese market.
            URNumber6
          • Are you retarded? That's like stepping out of

            an airplane in flight and after the first half second saying well gee I've only fallen a few feet so I must be in good shape. Your using a retards definition of smartphone. The reality is pre elop in 2009,2010, and 2011 Nokia sold zero smartphones. That's the magnitude of the problem elop inherited.
            Johnny Vegas
          • retards = flag

            ...
            Arm A. Geddon
          • That was in responce to Johnny Vegas.

            Some things should be left in Vegas.
            Arm A. Geddon
          • By what definition is a Symbian phone not a smartphone?

            Be objective - quell your kneejerk response based on the internet echo chamber - and explain by what objective measure you conclude Symbian phones weren't smartphones?

            App store? In 2010, the Ovi app store was 2nd in # of apps and sales and profits to only Apple. Touchscreen? Check. Browser? Check.

            As to the stepping out of the plane, MeeGo took a long time but was finally in the pipeline - and was being well reviewed, culminating in the N9 release, which won design awards (with Apple's newest iPhone as a competing candidate, btw). The N9 would have come out months sooner, without Elop's layoffs and resistance, according to reports.

            You're better than that comment, Johnny Vegas. Imho.
            daboochmeister
      • LOL

        Not even close. Elop is one of the biggest failures in history when it comes to managing a company.
        Tridus
    • failure?

      IMHO has done a great job keeping the Nokia on the surface. Helped her survive the most difficult moments which led Kallasvuo. Did what he could to repair the damage caused by the previous CEO. Thanks to him Nokia is still in the game, as opposed to the Moto.
      Mr.SV
      • You are totally wrong

        Nokia can "survive" just because it hasn't dead yet, it still got HO to sell at that time. Elop didn't help it to survive.

        Elop's burning platform is just failure. Do you have any objective information which shows that Elop has actually helped Nokia?

        Kallasvuo may not do a good job but Elop is as bad (if not worse than) as Kallasvuo.
        Rockchan
        • If you want to mention MS paid money to Nokia

          you need to realise that a lot of the money was paid back to MS as WP license fee. Therefore, even that "financial support" is not really true.
          Rockchan
        • Nokia's Elop to get $25 million as part of Microsoft acquisition deal

          elop is a Trojan planted by m$ to destroy nokia and buy its remnants cheap. standard m.o. of raiders of all colors ...
          kc63092
      • Moto not in the game?

        Hmm ... you did know that Moto shipped considerably more smartphones than Nokia throughout 2012, and that in q1 2013, even with a stale line, they sold more than Nokia did WP8 phones? (much of Nokia's q1 2013 sales were old WP7 devices that were channel stuffed).

        And that's with Nokia having the WinPho playing field almost to itself, and Moto competing against 9 - 10 other vendors.

        Nokia couldn't have done better with Android than WinPho? Say again? You have to go to the #8 or #9 Android OEM to find one that doesn't put the lie to that statement.

        Oh well.
        daboochmeister
    • Was it a failure for him?

      Maybe just for Nokia and stock holders...
      AleMartin
      • Speaking as a stockholder of both....

        How are NOK stock holders failing? 6 months ago the stock was $2.50 and now it's pushing for $7.

        How are MSFT stockholders failing? Their company becomes a legitimate contender in hardware overnight, something core to the current business, for $5 billion (now explain how Google (an Advertising, not a hardware company) benefits from the 12B purchase of Android bit-player Motorola).
        Tojuro