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 Bill Shooter of Bul on Tue 24th Sep 2013 14:40 UTC in reply to "Comment by Nelson"
Bill Shooter of Bul
Member since:
2006-07-14

That's a very business school answer. Its a very broken part of our economy that we reward CEO's so highly regardless of their success.

There really is no honest view of situation other than Steven Elop helped himself and Microsoft, more than he helped Nokia or its stockholders. Regardless of what you think about any party involved or their motivations, that is the objective outcome.

Reply Parent Score: 8

RE[2]: Comment by Nelson
by lucas_maximus on Tue 24th Sep 2013 16:31 in reply to "RE: Comment by Nelson"
lucas_maximus Member since:
2009-08-18

If the stock went up surely that benefited the shareholders as well, who are ultimately the owners of the company.

Reply Parent Score: 2

RE[3]: Comment by Nelson
by Nelson on Tue 24th Sep 2013 17:04 in reply to "RE[2]: Comment by Nelson"
Nelson Member since:
2005-11-29

People who have no skin in the game pretending they understand what's going on. Nokia even being alive today is proof of how completely clueless some of the commenters here are.

I've predicted volume increases, they've happened. I said they'd live, they did. I said there'd be no profit warning and no channel stuffing, there wasn't. I said the drop in Q2 2012 was a blip, it was. Its like you lose for being right here.

Meanwhile people who are consistently wrong on just about everything Nokia are up voted because people can't get over their MeeGo hardon and Microsoft hatred.

I took a financial bet on my predictions and it paid off, not something I see anyone of the armchair CEOs doing.

Reply Parent Score: 1

RE[3]: Comment by Nelson
by acobar on Tue 24th Sep 2013 17:24 in reply to "RE[2]: Comment by Nelson"
acobar Member since:
2005-11-15

If the stock went up surely that benefited the shareholders as well, who are ultimately the owners of the company.

It depends on if its was sent to its lowest before start to recover, what happened on this case.

Reply Parent Score: 3

RE[3]: Comment by Nelson
by Bill Shooter of Bul on Tue 24th Sep 2013 18:51 in reply to "RE[2]: Comment by Nelson"
Bill Shooter of Bul Member since:
2006-07-14

Yeah, it went up from two months ago, Not up since Elop took over.

Reply Parent Score: 2