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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Not only Finland is enraged.
by isaba on Tue 24th Sep 2013 14:52 UTC
isaba
Member since:
2006-12-30

Nokia was a great company with superb products. Yes, they missed the train of change in the smartphone market due to shortsightedness, but that does not invalidate their great job in devices, in feature phones (most Asha phones are simply good enough for most people!) and innovative ideas in such difficult times.

I also feel enraged and ashamed of these practices. I am aware that morals in business do not have any chance lately, but this, this ending is unnerving and disgusting.

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