New CEO was given EUR 4.5 million to offset lost Microsoft pay
 Stephen Elop | ||
 Hans Vestberg | ||
 Jouko Karvinen | ||
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Elop joined Nokia at the end of September 2010.
In October, Nokia paid Elop EUR 2.3 million to offset the income he lost after handing in his notice of resignation at Microsoft.
In October 2011, Nokia is to pay him another USD 3.0 million, which is equal to EUR 2.2 million according to the current exchange rate.
In practice, the payment is a compensation for signing an employment contract.
In 2010, Nokia paid Elop a total of EUR 3.8 million, including salaries and remunerations.
In mid-February of this year, Elop announced that he had sold his entire holding in Microsoft stock and purchased 150,000 Nokia shares, currently worth around EUR 1 million.
On the Finnish scale, Elop’s fixed annual salary is at the same level as the basic salary paid last year to Jouko Karvinen, the President and CEO of the forest company Stora Enso, and to Jussi Pesonen, the President and CEO of the forest products company UPM.
When it comes to Nordic companies, the fixed annual salary paid in 2010 to Hans Vestberg, the President and CEO of the network equipment provider Ericsson, was EUR 1.3 million.
The fixed remuneration received by Elop is on the same plane as the basic salary of many presidents and CEOs in the US telecommunications companies. However, in the United States the salaries of corporate executives easily tend to rise to tens of millions of dollars, thanks to hefty share-based incentive and option schemes.
When taking into account the salary payments of EUR 280,000, the cash incentive of EUR 440,000, the valid price of the share-based incentives and options at the time they were granted, and the remuneration of EUR 2.3 million paid in October, Elop’s imputed income in 2010 was EUR 6.7 million.
The information is based on the annual report filed by Nokia to the US Securities and Exchange Commission.
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