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CEO Stephen Elop to Nokia: I'm getting a divorce, so I need all of the $25 million

Posted: , by Daniel P.

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CEO Stephen Elop to Nokia: I'm getting  a divorce, so I need all of the $25 million
In light of Nokia's CEO Stephen Elop exorbitant for the Finish phsyche "golden parachute" compensation of $25 million, a local newspaper did some digging in the SEC disclosures about the Microsoft-Nokia deal, and found out that Elop was given special clauses in his contract that were unavailable to the previous, Finnish CEO.

Nokia's board chair Siilasmaa claimed on Friday that Nokia's American CEO wasn't getting a deal the Finnish ones wouldn't given the circumstances. It turns out, however, that Mr Elop actually got an US-style contract, with "accelerated vesting" of his share options if "change of control" occurs, and a nice golden parachute to land him if someone buys the company or a part of it - all normal for the CEO-heavy US business climate, but an abomination abroad.

Thus, if the CEO managed to cheapen the company's shares and someone scooped it up, he or she would have walked with the aforementioned many millions, and this has been in Elop's contract from the beginning. Yesterday the board chair admitted the discrepancy and said Nokia’s legal team had “a working place accident” for not noticing it earlier.

Long story short, that's exactly what happened with Nokia in the span of just three years, confirming once again that whichever company has had similar dealings with Microsoft usually ends up on the losing side, and, just like a few analysts were warning, this might have been Ballmer's plan all along. Heck, the company paid more for Skype than it did for Nokia, after all - $7.5 billion is a far cry from the $19 billion bandied about when the first reports that Microsoft will acquire Nokia's smartphone division surfaced. 

Also, it seems that Nokia's favorite blogger Eldar Murtazin was right all along when he reported that the heads of Microsoft and Nokia are meeting in Las Vegas around last year's CES expo to decide on the buyout. He also informed that the Siilasmaa will be named board chair then, which might explain why Nokia's legal department had the "accident" of not noticing all the fine details in Elop's contract.

As for CEO Stephen Elop, the Finnish newspaper that came up with the investigation, cites unnamed sources that confirm the board asked him to reconsider his golden parachute package of $25 million, in light of all the negative press pouring on the deal because of that. He, however, said that he's in the process of getting a divorce, and his wife's lawyers wouldn't let him turn down a cent of the package. Sounds like a plan - moreover, 70% of that compensation will come from the new owner Microsoft, so resistance seems futile.

source: HelsinginSanomat (1)(2) via Forbes

59 Comments
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posted on 25 Sep 2013, 06:52 27

1. PhansMuneeb (Posts: 345; Member since: 28 Jan 2012)


so it was all planned from the beginning as we know.
RIP NOKIA...M.U..

posted on 25 Sep 2013, 07:09 14

6. xperiaDROID (Posts: 5047; Member since: 08 Mar 2013)


Don't forget, Nokia shareholders still haven't approve the Microsoft acquisition deal, so there's still hope for Nokia to keep making phones.

posted on 25 Sep 2013, 07:21 8

9. ScottSchneider (Posts: 312; Member since: 06 Dec 2011)


MS would have already thought of that as much we do the same... They would close anyone's mouth with the kind of $$$ that they have... So it is futile to believe that Nokia will be back to square one...No squares for Nokia to move -> Check Mate... RIP Nokia is the best there is...

posted on 25 Sep 2013, 07:28 9

10. pokharkarsaga (Posts: 348; Member since: 23 Feb 2012)


it will be better for nokia if this acquisition doesnt happens.so that nokia can adopt sailfish os or ubuntu os. i dont like android on nokia

posted on 25 Sep 2013, 08:48 1

20. pookiewood (Posts: 552; Member since: 05 Mar 2012)


+1 for Ubuntu

posted on 25 Sep 2013, 18:41 2

47. joey_sfb (Posts: 2547; Member since: 29 Mar 2012)


After the damage Nokia takes from Elop, Nokia don't have the resources to stand on their own.

Even relying on the Android ecosystem is too little too late and that's what M$ and company hope to buy Nokia on the Cheap. I just hope some player to step in and offer a higher price and force M$ to bleed out as well. I wonder whether Google to do a cash infusion to Nokia to make Android phones. That way M$ would be desperate and pay more to Nokia for the purchase.

posted on 25 Sep 2013, 21:16 1

51. Alex123 (Posts: 190; Member since: 17 Oct 2012)


You don't like Android on Nokia but in order to survive Nokia should continue making WP and Android at the same time. However, Android is the outstanding OS and so many people love it.

posted on 25 Sep 2013, 11:15 2

31. shashi.map (Posts: 30; Member since: 16 Oct 2011)


God , I wish that could happen !!!

posted on 25 Sep 2013, 13:09

39. downphoenix (Posts: 2266; Member since: 19 Jun 2010)


Yea but the damage is done. The shareholders will probably agree to just take their chump change and move on.

posted on 25 Sep 2013, 18:08 3

46. akki20892 (Posts: 3245; Member since: 04 Feb 2013)


Yes I agree, lets wait and see. Hold your breath for next year, what is Nokia project N? Nokia with Android.

posted on 25 Sep 2013, 09:29 13

22. RiseAgainst94 (Posts: 271; Member since: 03 Mar 2012)


Yeah, Elop is a tool.

posted on 25 Sep 2013, 10:16 15

26. asingha94 (Posts: 286; Member since: 08 Apr 2012)


He is also the biggest a**hole of this era!

posted on 25 Sep 2013, 10:03 7

23. rms.max (Posts: 73; Member since: 26 Sep 2012)


"Long story short, that's exactly what happened with Nokia in the span of just three years, confirming once again that whichever company has had similar dealings with Microsoft usually ends up on the losing side, and, just like a few analysts were warning, this might have been Ballmer's plan all along."

Ballmar actually ruined the image of M$ also.he is evil ..& all ELOP cares about is money.He is the trojan horse of M$.
***This incident actually Breaks the moral of business.Now everybody will be little scare To Trust Their CEO .

posted on 25 Sep 2013, 10:14 5

25. Reluctant_Human (Posts: 846; Member since: 28 Jun 2012)


Completely agreed rms. Where are all the Elop supporters now that the truth is out?

F*** Elop and F*** Ballmer. People like that are the reason why american businessmen and practices are seen in such a negative light in the rest of the world. No CEO should have a clause for getting a bonus for ruining a company. It makes me sick.

posted on 25 Sep 2013, 12:21 4

35. tacarat (Posts: 115; Member since: 22 Apr 2013)


Sadly, Borders Books had similar corporate rapists. And BB. I wish I could get paid a few hundred grand to run a business into the ground. I'll work my way up to their level soon enough.

posted on 25 Sep 2013, 11:16 4

32. Caralho (Posts: 119; Member since: 18 Jun 2012)


Today's CEOs are a little better than gangsters. They should all be rounded up and sent to a work camp in Alaska.

posted on 25 Sep 2013, 12:44 7

38. haseebzahid (Posts: 1801; Member since: 22 Feb 2012)


moroal of the story if you own a big company never sign a deal with a an American at all

posted on 25 Sep 2013, 13:31 5

41. lyndon420 (Posts: 1687; Member since: 11 Jul 2012)


Yup...I agree. Saw this Trojan horse coming a mile away. Congrats to ms for taking a reputable company and driving it into the ground.

posted on 25 Sep 2013, 21:13 1

50. Alex123 (Posts: 190; Member since: 17 Oct 2012)


I am really excited if the deal fails so we would see the possibility of both android and WP with Nokia brand on it.

posted on 25 Sep 2013, 06:55 1

2. Rongocook (Posts: 76; Member since: 20 Sep 2013)


It was always fishy!

posted on 25 Sep 2013, 08:36

18. Nathan_ingx (Posts: 2992; Member since: 07 Mar 2012)


I'm pretty sure this was reported different in other sites.
I find a massive negative stench on this one.

posted on 25 Sep 2013, 20:32 4

49. phil2n (Posts: 466; Member since: 30 Apr 2012)


I remained silence for a long time because I believe in Stebum Eflop, but this is to much. Only if I know that this was going to happen. at the 1st quarter as CEO I should have kick his ass, shoot a ray gun, and finished him with my energy ball in his mouth.. F**k You ELOP

posted on 25 Sep 2013, 06:55 3

3. Googler (Posts: 813; Member since: 10 Jun 2013)


Sounds like a real tool. Hate to say it but the workers of companies like this need to rise up and make their voices heard, CEO's who get paid large volumes of money to run companies into the ground is a practice that needs to end, permanently.

posted on 25 Sep 2013, 11:21

33. dorianb (Posts: 347; Member since: 24 Oct 2012)


It is generally assumed that the word “sabotage” had its origins in the French word sabot, which refers to a large, heavy wooden clog made of a single piece of wood and worn by workers. However, there are quite a few theories of the link between those clogs and a word referring to the deliberate destruction of property by an enemy or protesting workers, and even a theory that the word relates to a different sort of shoe altogether.

Possibly the most common theory of the origin of the term is that the first instances of sabotage were French Luddites who threw their wooden clogs into powered looms to clog the machinery during the Industrial Revolution. However, some historians doubt such an origin of the term. In any event, it seems unlikely that poor workers would have thrown their own shoes away and that they could certainly have accomplished the same purpose with other, less valuable, pieces of wood that would have been more difficult to link to the workers responsible.

posted on 25 Sep 2013, 06:59 20

4. itsdeepak4u2000 (Posts: 2330; Member since: 03 Nov 2012)


F**k u Elop...He's a trojan sent by MS who betrayed and sold Nokia and now wanting to eat Nokia's every single penny. He brought Nokia down from sky to ground by sticking with WPs otherwise we would have been enjoying Nokia's Android devices. Such a shameful person he's bringing lots of excuses of divorce and everything else. I think his wife understood that he'll also sell her for money that's why she's divorcing him.

posted on 25 Sep 2013, 07:06 1

5. shy2papa (Posts: 199; Member since: 23 Jan 2010)


Hate to say i told you so, LOL my ass off. nokia was getting s******ed by MS all these years and all they had to do was send in there Trojan Horse "Elop" make the company less relevant and then buy it cheap.

posted on 25 Sep 2013, 07:13 7

7. AhmadAlsayegh (Posts: 253; Member since: 18 Jul 2011)


man, I feel a sudden urge to smash my 820 to the wall

posted on 25 Sep 2013, 07:14 7

8. troutsy (Posts: 239; Member since: 17 Feb 2012)


Really, really terribly written article. Who's editing this garbage?

posted on 25 Sep 2013, 07:28 5

11. abhilashpro (Posts: 5; Member since: 25 Jun 2012)


Agreed. An interesting article has been spoiled by lousy grammar and language. I've understood only half the story.

posted on 25 Sep 2013, 10:30

27. NexusKoolaid (Posts: 277; Member since: 24 Oct 2011)


I do hope you’re being sarcastic.

posted on 25 Sep 2013, 07:35 1

12. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)


I agree. Very biased and clickbait words everywhere. In the end I do think Elop's excuse is weak, but that doesn't change how unprofessional this article is.

Besides, this article is begging to stir up a lot of vocal hate against this guy. Let's hope no one is stupid enough to say something... unfortunate.

posted on 25 Sep 2013, 07:36 1

13. dexter_jdr (Posts: 1090; Member since: 28 Jun 2012)


probably someone told them to do this intentionally...

posted on 25 Sep 2013, 07:44 1

14. AhmadAlsayegh (Posts: 253; Member since: 18 Jul 2011)


lol, i had to go to forbes website to understand the story

posted on 25 Sep 2013, 10:04

24. UdhaiyaPrasanth (Posts: 72; Member since: 05 Sep 2012)


Thank God, I thought I was the only one!

posted on 25 Sep 2013, 08:07 1

15. faisolbauuz (Posts: 121; Member since: 05 Jan 2013)


Mission accomplished for elop i guess
Now he got his reward from microsoft

posted on 25 Sep 2013, 08:19 2

16. Eonnaydra (Posts: 197; Member since: 23 Oct 2012)


He is foolish,Elop ruined Nokia,siktir!

posted on 25 Sep 2013, 08:36 3

17. _Bone_ (Posts: 2104; Member since: 29 Oct 2012)


Elop, the greatest undercover Microsoft agent in history?

posted on 25 Sep 2013, 08:40 2

19. aditya0217 (Posts: 1; Member since: 25 Sep 2013)


i understood that elop wanted to put nokia down when nokia started producing with microsoft

posted on 25 Sep 2013, 09:23 3

21. Bernoulli (Posts: 1433; Member since: 01 Sep 2012)


Reading these news just made me a bit sick... I cannot believe what I'm reading, read, why would Nokia allow such a horrible contract for their CEO?! pathetic, I'm out of this planet

posted on 25 Sep 2013, 10:45 1

28. AfterShock (Posts: 2102; Member since: 02 Nov 2012)


Bet Elops lawyer, himself an wife conspired to stage a divorce that'll drag on but marriage will be saved at last moment.

Seems to be a lot of no talent/ignorant/don't care CEO in mobile companies as of late,
That does not bode well for anyone but the CEO themselves.
I guess its good to be king

posted on 25 Sep 2013, 10:46

29. allen83 (Posts: 107; Member since: 01 Mar 2012)


Eldar murtazin is correct about microsoft deal and also Tomi Ahonen is correct about the deal. So who's blind now? Now Nokia Lumia lovers what's the deal now so sicke about your microsoft appraisal.

posted on 25 Sep 2013, 10:55

30. Pdubb (Posts: 239; Member since: 08 Aug 2011)


Unless I have missed something MS only has a lease on Nokia phone division. They have the Lumia name but only for a short while and then Nokua can go back to making devices. At least that is how I have understood the terms. Maybe I'm wrong but Nokia will be back one day and those that think it us great can show it.

posted on 25 Sep 2013, 11:39

34. kanagadeepan (Posts: 634; Member since: 24 Jan 2012)


OH, Nokia Board Members, HOW MUCH FOOLISH YOU CAN BE????

posted on 25 Sep 2013, 12:25 5

36. GrapeEyes (Posts: 243; Member since: 01 Sep 2013)


People should just stop buying anything made/owned by microsoft.

Nokia shareholders should squash the deal and watch microsoft decline slowly but surely.

Burn in hell microsh*t!!!!!

posted on 25 Sep 2013, 17:36

45. Heritor (Posts: 32; Member since: 05 Nov 2012)


So you are mad about this and want a company to die but are fine that all your devices are made by exploited workers that work in conditions you yourself would never submit to. Interesting.. very interesting. The ethics of people are down right absurd.

posted on 25 Sep 2013, 21:23 2

52. VZWuser76 (Posts: 1190; Member since: 04 Mar 2010)


And did you send your post with your mind or one of those devices made by exploited workers? Interesting...very interesting.

posted on 25 Sep 2013, 12:28

37. JunkCreek (Posts: 399; Member since: 13 Jul 2012)


So, he is the one who must take all the responsibility for cutting off nokia's workers.

250 millions supposedly given to them as compensation.

Eloop, you drew people blood to make you money? You're fvcking disgusting.

posted on 25 Sep 2013, 13:27 1

40. Ronny666 (Posts: 108; Member since: 08 Jun 2013)


For some reason, I hate the sight of his face.

That is the kind of face that I'd love to bully during my schooling days without feeling guilty. Why because I know these kinda faces will grow up to be an a**hole.

posted on 25 Sep 2013, 13:48

42. tedkord (Posts: 4275; Member since: 17 Jun 2009)


Wow, 25 million for throwing the last few shovels of dirt on Nokia's grave. Imagine how much he'll get if he becomes Microsoft's CEO and finishes them off!

posted on 25 Sep 2013, 14:52

43. Zero0 (Posts: 570; Member since: 05 Jul 2012)


With business practices like those, is it any wonder why his wife is divorcing?

posted on 25 Sep 2013, 16:23

44. amancarlos (Posts: 42; Member since: 09 May 2012)


I've always said: Respect your Eldars!

posted on 25 Sep 2013, 19:14 1

48. Avenger337 (Posts: 59; Member since: 14 Apr 2013)


Clearly, Elop was a Microsoft pro rata sent to topple Nokia from within. He was not kidding when many analysts said Microsoft was planning to buy Nokia for some time to send it to ostracism.

posted on 25 Sep 2013, 21:25 2

53. VZWuser76 (Posts: 1190; Member since: 04 Mar 2010)


Two words describe this man, Monumental Douchebag.

posted on 25 Sep 2013, 22:04

54. rusticguy (Posts: 2818; Member since: 11 Aug 2012)


Why is there so much silence in Nokia Camp?

posted on 25 Sep 2013, 22:25

55. rusticguy (Posts: 2818; Member since: 11 Aug 2012)


So he is getting a new wife as he moves to new employer? Part of perks?

posted on 26 Sep 2013, 00:55

56. GoJin (Posts: 10; Member since: 05 Feb 2013)


.he's getting a divorce?!

wow, he can't even manage his "house" and can't "lead" his wife...what makes him "qualified" to lead Nokia...traitor a**hole!

here's hoping Nokia makes a comeback!

posted on 26 Sep 2013, 02:48

57. celticrain (Posts: 7; Member since: 25 Aug 2013)


Fu...... u elop ass f.... u big time.im sure nokia's board of directors finally think once again and shareholders are put negative feedback. oo come on nokia in a global asset its not for fu....king Microsoft ..imagin ballmar face nothing short of Jews face .

posted on 26 Sep 2013, 09:24

58. amilcarmz86 (Posts: 95; Member since: 09 Jul 2013)


Nokia was pushed to the abyss without even knowing they were pushed... :(. My favorite cellphone company was ruined...

posted on 27 Sep 2013, 03:20

59. chandancherry (Posts: 29; Member since: 25 Jun 2013)


anybody interested can sign it:

change.org/en-IN/petitions/nokia-corporation-micro​soft-corporation-release-symbian-source-code-make-​it-open-source-release-latest-update-builds-save-t​he-environment

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