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: Comment by Nelson
by Radio on Tue 24th Sep 2013 12:42 UTC in reply to "Comment by Nelson"
Radio
Member since:
2009-06-20

You know how to leave a company flush with cash? Sell all assets, fire everybody, and voilĂ !

This is not how you run a company.

This simpleton view of how companies work is all too common here.
I really wonder how we managed to have economic growth before, when CEO weren't rewarded with golden parachutes - a novel "natural rule of how companies work" which started only in the 80s.

Reply Parent Score: 6

RE[2]: Comment by Nelson
by Nelson on Tue 24th Sep 2013 13:51 in reply to "RE: Comment by Nelson"
Nelson Member since:
2005-11-29

But they didn't sell off all assets or fire everybody. What the fuck are you talking about. You don't get to make things up.

Reply Parent Score: 1

RE[3]: Comment by Nelson
by missingxtension on Tue 24th Sep 2013 14:03 in reply to "RE[2]: Comment by Nelson"
missingxtension Member since:
2011-01-14

So who gets to make things up?

Reply Parent Score: 1

RE[3]: Comment by Nelson
by Radio on Tue 24th Sep 2013 14:34 in reply to "RE[2]: Comment by Nelson"
Radio Member since:
2009-06-20
RE[3]: Comment by Nelson
by M.Onty on Tue 24th Sep 2013 16:07 in reply to "RE[2]: Comment by Nelson"
M.Onty Member since:
2009-10-23

He's clearly saying that leaving a company flush with cash isn't necessarily difficult or good for the company. He presents an extreme but not uncommon example to demonstrate why.

Reply Parent Score: 3