Elop set for huge bonus if Nokia-Microsoft deal is a success

Elop set for huge bonus if Nokia-Microsoft deal is a successThere's no motivation quite like money – and in Nokia CEO Stephen Elop's case we're talking about a whole lot of the stuff.

The full details of Elop's compensation package have just been revealed, and show that the Nokia boss could be a whopping €12.75m better off should the agreement with former employer Microsoft prove successful.

It's safe to say that Nokia's decision to adopt Windows Phone 7 as its primarly smartphone platform hasn't been universally well received. In fact, some have even gone so far as to suggest the move is simply a ploy by Elop and his former boss Steve Ballmer to devalue the Finnish firm so Microsoft can buy it on the cheap.

But if that is the plan, it doesn't look like Elop will do very well out of it. At last month's Nokia Board of Directors meeting a new compensation package was put in place for the CEO closely linked to the success of Nokia's new direction, as measured by the company's share price over the next two years.

Using other companies in the sector as a benchmark, Nokia will evaluate its overall share price performance, which will then trigger a number of scenarios.

Should Nokia's share price continue to fall, Elop will still receive €1m in bonuses each year, but that's down from €1.5m under the old package. Where he can score, however, is if the strategy proves successful.

A moderate success will see Elop pocket some €1.125m worth of shares (based on a €9 share price), which just makes up for the €1m culled from his regular bonus.

But should Nokia judge that the new strategy is a great success, performing among the top three companies in its peer group, with its share price having doubled to €17, then Elop will rake in 750,000 shares, which at that price would be worth €12.75.

So let's get this straight: Elop leaves Microsoft for Nokia, then arranges a deal to work with his old buddies again, for which he's been lined up for millions in bonuses. Some people have all the luck.

Add a comment
 1 comment

JanSt / MOD  Apr. 1, 2011 at 11:25

They should give that money to some great software devs who can think outside the box, and who have gasmasks (you know, the smoke from the burning platform)

Email:

You don't need an account to comment. Just enter your email address. We'll keep it private.

Comment: