Linked by Thom Holwerda on Tue 24th Sep 2013 11:44 UTC
PDAs, Cellphones, Wireless

Finland is boiling with rage this weekend over the $25 M bonus payment the CEO Stephen Elop is set to receive as he leaves Nokia after his two-year tenure. Questions are now being raised by the oddest aspect of the bonus: the board of Nokia seems to have given Elop a $25 M incentive to sell the handset unit cheaply to Microsoft way back in in 2010. This effectively means that the board hired a man who was given a giant carrot to drive down Nokia's overall valuation and phone volumes while preparing a sale to Microsoft. What could possibly be a reason to structure Elop's original contract in this manner? Did the board in fact end up promising Elop more compensation in case he sells the phone division than if he runs it with modest success?

Vindication. We were right all along.

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RE[2]: Comment by Nelson
by Nelson on Tue 24th Sep 2013 14:15 UTC in reply to "RE: Comment by Nelson"
Nelson
Member since:
2005-11-29

I'm sorry, but being sold off to an investment bank because BBRY was too pigheaded to see they didn't have the cash to compete on their own isn't smart to me, or morally righteous. Its actually the opposite, its almost criminally negligent.

What's worse, having a single division bought by Microsoft, or being bought whole by a non tech company and turned into a zombie firm of sorts?

I've always maintained that this is about Nokia's financials, and I didn't let the obsession some of you had with Android, MeeGo, or (even more laughably) Symbian cloud my judgment. The results speak for itself, Elop, who's ultimate job is to protect shareholder value did a terrific job.

He transferred the phone division to a healthy buyer with an interest in continuing the vision that many employees in Finland worked on, and he unlocked shareholder value for the remaining company.

Dying valiantly is nice, but not dying is better. Lumia phones will be sold for time to come, BB10 handsets will go right up there with webOS as foolish endeavors by companies who overestimated their own resources.

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