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[3]: Comment by Nelson
by Radio on Tue 24th Sep 2013 15:13 UTC in reply to "RE[2]: Comment by Nelson"
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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.
Just to show how stupid this is, here is an metaphor: consider, on one side of a city, an upper class school, and on the other side, a desheritate school, so wide apart that the worst student of the upper school is better than the best student of the lower school.

Now imagine that the worst student of the upper school decides to go to the lower school. Suddenly, the level in BOTH schools has risen.

Do you really think anything has improved?

Statistics are funny, heh?

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