Elop return to Microsoft’s “alternative” compensation: $25 million severance pay

according to nokia on Thursday, according to a proxy files submitted if nokia completed to sell its mobile phone business deal, Microsoft is about to join Microsoft’s former nokia CEO Stephen Elop (Stephen Elop) will get 18 million euros ($25 million) of the severance pay.

under the leadership of Stephen elop, nokia’s enterprise value has suffered serious losses, and the severance pay equal to nokia’s enterprise value for every 2.5 billion euros ($3.4 billion) lost, elop will get 1 million euros ($1.35 million). Only three years ago, Mr Elop has just from Microsoft to nokia’s chief executive, at that time he has received $6.2 million in compensation. With Stephen elop at nokia compared to three years to get the total compensation, the severance pay more has more than doubled.

nokia shareholders will vote on November 19, the deal, but elop the severance pay is likely to provoke anger investors on the deal. In Finland, some people think that Mr Elop has the problem of conflict of interest in the deal, at the same time also complain that Microsoft’s 5.44 billion euros ($7.4 billion) of the purchase price is too low, the reason is that until last year, still the world’s largest mobile phone maker nokia mobile department.

a closely associated with nokia financiers, according to such low price looks like nokia admits his failure. The financier, said: “this means that price, or the actual situation of nokia facing worse than market knowledge, or just simply say it is a bad deal. Otherwise why nokia to be sold at such a low price mobile unit? Nokia has lost.”

in the Finnish economy minister Jane watts paavo (Jan Vapaavuori) is undergoing a Finnish newspaper interview: “it is hard to understand (grant) to elop He Li according to the prize money really are.”

elop has stepped down as chief executive of nokia earlier this month, the new mobile phone, head of the department. Nokia said, grant the prize to elop is justified, it is according to his labor contract should be issued. According to the contract, in the case of control is changed, elop will receive 18 months basic salary and bonus, and he held by stock options will also speed up the cash.

nokia also said that the prize will be borne by Microsoft, 70% of the remaining will be paid by nokia, including 4.1 million euros ($5.5 million) of base salary and bonus, as well as 14.6 million euros ($19.8 million) equity incentives. Nokia, points out that the company’s shares since announced deals has risen by 67%, and this is further evidence that nokia has reason to grant bonuses to elop.

nokia’s chairman, Bristol syrah, smart (Risto Siilasmaa) will be due to replace Stephen elop as interim chief executive to get extra pay 500000 euros ($680000), 40% of which will be distributed in the form of stock.

once nokia in the mobile phone market dominant, but has recently been apple and Google (weibo) to catch up with, and if the company shareholder approval of Microsoft’s acquisition, it marks the company will be completely out of the mobile phone market.

in nokia announced the preliminary results of the company has set up a deputy has two big deal posture: Microsoft’s acquisition of nokia’s mobile phone business, and nokia NSN’s takeover of Siemens’ holds 50% stake.

the preliminary results show that the first half of nokia’s sales of 11.5 billion euros ($15.5 billion), but the fact is deducted these deals is only 6.3 billion euros ($8.5 billion); From continuing operations business net loss of 20 million euros ($27 million), after deducting the deal as much as 617 million euros ($835 million). And if in accordance with the “profits” nokia prefer physicist profitability) accounting measurement methods, its net profit to 436 million euros ($590 million).

in addition, after included in these two transactions, nokia’s total net cash holdings will be from the original 4.1 billion euros ($5.5 billion) to 7.5 billion euros ($10.1 billion).

nokia said, was chief of the company for nearly three years, Mr Elop’s salary totaled 9 million euros ($12.2 million). In accepting the appointment, elop received $3.2 million, a year later as “damaged income compensation” and received $3 million. In addition, he also won the 510000 euros ($690000) to pay must pay breach fee at the time, and an additional 312000 euros ($420000) as a judicial expenses related compensation.

source: tencent technology