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[7]: Comment by Nelson
by Nelson on Tue 24th Sep 2013 19:39 UTC in reply to "RE[6]: Comment by Nelson"
Nelson
Member since:
2005-11-29

Yeah, a pretty sharp drop prior to Elop, huge compared to the drop under his tenure. The stock also stabilized around $4 and is up at $7 and poised to increase further. Nokia is also paying out a one time dividend in the spring according to rumors.

Nokia is actually a nice investment target even without phones, I kind of regret selling off my shares, but I took the profit while it was infront of me.

Reply Parent Score: 3

RE[8]: Comment by Nelson
by Radio on Tue 24th Sep 2013 20:31 in reply to "RE[7]: Comment by Nelson"
Radio Member since:
2009-06-20

Yeah, a pretty sharp drop prior to Elop, huge compared to the drop under his tenure.

So your insight is that Elop was less worse than the 2008 financial crisis.

Amazing. Tell us more.

Reply Parent Score: 1

RE[9]: Comment by Nelson
by Nelson on Tue 24th Sep 2013 21:12 in reply to "RE[8]: Comment by Nelson"
Nelson Member since:
2005-11-29

And Nokia's answer to the iPhone didn't come until a year later, the problem was incompetence and complacency. A financial crisis may explain a part of it, as it would've affected Nokia's supply chain in ways beyond their control, but it's far from the only reason for the drop.

Not to mention, a lot of the drop occurred prior to the 2008 fall of Lehman.

God this revisionist history is so fucking annoying.

Reply Parent Score: 3