Nokia CEO’s pay package halved
According to filing done today with the US Securities and Exchange Commission, Nokia Chief Executive Stephen Elop took a 45% cut in his pay package last year. Nokia has however continued to lose market share in smartphone to Samsung and Apple. Mr. Elop, hired in 2010 from Microsoft Corp to turn around the Finnish mobile phone maker, earned 4.33mil euros in 2012, down from 7.94mil euros in 2011. While his base salary rose by 59,500 euros to 1.08mil euros, his stock and option awards fell slightly and he earned no bonus. Mr Elop compensation included about 2mil euros to make up for income lost as a result of his move from Microsoft. Nokia’s shares fell 22% last year. Nokia reported an underlying profit in the fourth quarter thanks to cost cuts, but it axed its annual dividend payment for the first time to shore up its cash position.
The SEC filing included a customary list of risk factors, many of them focused on whether Mr Elop controversial decision in 2011 to adopt Microsoft’s untested Windows Phone software would pay off. Nokia also announced today that it will receive more payments from Microsoft than it pays to the software giant this year, but will be a net payer in royalties starting in 2014.The company added its payments to Microsoft will exceed what it receives from the US company by about 500mil euros over the remainder of their pact although the company did not disclose how long their deal will last. The forecast for sales of Lumia, the Nokia’s Windows Phone handsets is expected to ship 40 million Windows Phone handsets this year.