Nokia News Update: Nokia Chairman Admits Pay Off Mistake
Nokia News Update: Nokia chairman admits pay off mistake. The massive pay off to former Chief Executive Officer Stephen Elop has angered many in Finland.
The Chairman of Nokia Ristoi Siilasmaa has had to admit that he gave the wrong information that could be considered misleading when he gave details of the pay off received by the former Chief Executive Officer Stephen Elop.
The deal that was worth sixteen million pounds is due to be paid to the former CEO, Mr Elop when the deal with Microsoft in which the Nokia handset business will be sold, is concluded. The information however has led to an angry reaction. In the mean time, Mr Siilasmaa has tried his best to pour oil on troubled waters by pointing out that the deal that has been offered to Mr Elop is, in fact, very similar to that which has been offered to those who have held the position of CEO at Nokia in the past. However he did admit in a recent newspaper interview that he had accidently given misleading information about the pay off.
The deal with Microsoft was signed on the third of September of this year at which time Mr Elop had agreed to stand down as the CEO of Nokia and to take a new job with Microsoft at the conclusion of the deal. It appears that due to the fact that Mr Elop was entitled to eighteen months salary as a result of this change, his management short-term cash incentive as well as his salary and share awards paid, on top of that, brought the sum up to over nineteen and a half million dollars. The amount involved has raised more than a few eyebrows.
The huge sum that has been given to the departing Chief Executive has caused a very angry reaction in Finland where even the economy minister has become involved and has been reported as saying that he finds it difficult to see how a bonus of this size could possibly be justified.
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Mr Elop originally worked for Microsoft and moved into the position he held at Nokia in 2010. He will now return to his former employer as the deal in which Microsoft will pay $7.2bn for Nokia’s hand set business is finalized. The matter will come before the shareholders in November at which time a vote will take place on the deal.
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