Elop to receive $25m for Nokia sale
The potentially outgoing CEO of Nokia, Stephen Elop, is set to receive a $ 25m payout for overseeing the sale of the Finnish handset maker to Microsoft, Elop’s previous (and future) employer.
The windfall has been labelled “termination payments” by Nokia and will be given to Elop if the firm’s shareholders agree to sell the handset business to Microsoft.
Nokia said the payment follows his agreement to step down as Nokia chief and that Microsoft would pay approximately 70 pe rcent of the total. He will then return to Microsoft after the closure of the deal.
In addition, Elop is entitled to 18 months of his base salary, plus a short-term management cash incentive, a package worth a total of around €4.2m. He would also be in line for around €14.6m from an accelerated vesting of his outstanding equity awards.
The news has reportedly been criticised in Finland, where Nokia is headquartered and founded. According to the BBC, the nation’s economy minister, Jan Vapaavuori, reportedly said: “I find it difficult to understand the merits of this bonus.”
Nokia’s shareholders will meet to decide on the proposed deal with Microsoft on November 19.