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 acobar on Tue 24th Sep 2013 17:24 UTC in reply to "RE[2]: Comment by Nelson"
Member since:

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[4]: Comment by Nelson
by lucas_maximus on Tue 24th Sep 2013 18:15 in reply to "RE[3]: Comment by Nelson"
lucas_maximus Member since:

It gained, I actually checked it over 5 years on google markets.

The price has gone up since 2012. Before then there was general trend down before Elop joined and for a year and a bit after he joined.

Reply Parent Score: 2