x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • Microsoft purchase of Nokia makes Elop $33 million richer

Microsoft purchase of Nokia makes Elop $33 million richer

Posted: , by Alan F.

Tags:

Microsoft purchase of Nokia makes Elop $33 million richer
Now that Microsoft's purchase of Nokia Devices and Services has closed,  the final price of the transaction has been determined. Based on a rise in Nokia's stock price, the final value of the acquisition was $7.5 billion, up from $7.2 billion at the the deal was made. Nokia's CEO at the time the deal was struck, Stephen Elop, worked out a golden parachute deal under which he would receive a $26 million severance payment. 70% would come from Microsoft and 30% from Nokia. But the rise in the stock price also affected Elop's payment in his favor.

Instead of the $26 million that he originally was scheduled to receive, Elop will now receive $33 million according to a published report. The executive will receive $5.5 million in cash with the balance consisting of stock. The ratio of the payout remains 70% from Microsoft and 30% from Nokia.

There are many Nokia stockholders and supporters who will tell you that Elop's deal is quite generous compared to Nokia's performance under his tenure. Now that Devices and Service belongs to Microsoft, so does Elop, whose new business cards read vice president of  Microsoft's Devices and Services.

source: CNET

37 Comments
  • Options
    Close




posted on 01 May 2014, 16:07 5

1. ArtSim98 (Posts: 2798; Member since: 21 Dec 2012)


Time for him to get a new Learjet.

posted on 01 May 2014, 16:44 10

8. giani (Posts: 269; Member since: 13 Nov 2012)


33 mil reasons for him to bring Nokia to where it is.

Naughty.

posted on 01 May 2014, 16:48 15

9. tedkord (Posts: 4825; Member since: 17 Jun 2009)


They should have called me. I could have driven Nokia into the ground for half that.

posted on 01 May 2014, 16:56 6

10. ArtSim98 (Posts: 2798; Member since: 21 Dec 2012)


lol. And probably a lot faster XD

posted on 01 May 2014, 18:06 4

17. akki20892 (Posts: 3480; Member since: 04 Feb 2013)


They should call me so I can troll them by get that money, choose wp, and make android.

posted on 01 May 2014, 16:59 11

11. PBXtech (Posts: 980; Member since: 21 Oct 2013)


Hard to not view him as a trojan horse when MS paid 70% of his earnings.

posted on 01 May 2014, 20:10 1

20. SleepingOz (unregistered)


Indeed! Fanboys claimed that MS was gonna save nokia, but nokia is hardly making any profit at all. It's more like it's facing sales decline according to its 2014 first quarter report.
Then again, good job Elop!

posted on 01 May 2014, 18:08 4

18. akki20892 (Posts: 3480; Member since: 04 Feb 2013)


Nokia's board members were stupid.
Anyway I'm waiting for 2016, Nokia should come back and surprise us.

posted on 01 May 2014, 23:36

30. 0xFFFF (Posts: 3092; Member since: 16 Apr 2014)


Who is to say they are not enjoying their payoffs right now?

posted on 02 May 2014, 01:39

33. Ashoaib (Posts: 2122; Member since: 15 Nov 2013)


Reward for his work... he deserve it otherwise nokia might stand up on its feet and never sold to microsoft

posted on 01 May 2014, 16:08 3

2. corporateJP (Posts: 1555; Member since: 28 Nov 2009)


This guy...

ii❕ii

posted on 01 May 2014, 18:03 1

16. akki20892 (Posts: 3480; Member since: 04 Feb 2013)


Your pic say it all.
He deserve.
In 2016
Nokia need to show him Nokia make android high end and sell it million and make profit.

posted on 01 May 2014, 16:09 2

3. tech2 (Posts: 2081; Member since: 26 Oct 2012)


Did I read that right, 5.5 mil in CASH ?!

http://img.gawkerassets.com/img/17kdjxvdqvygyjpg/ku-xlarge.jpg

posted on 01 May 2014, 16:15 1

4. Finalflash (Posts: 1772; Member since: 23 Jul 2013)


Of course, Mr. McDuck earned his money.

Edit: ....he changed his comment.

posted on 01 May 2014, 16:30 7

5. sprockkets (Posts: 1201; Member since: 16 Jan 2012)


Interesting. He gets paid $33 million for "losing" his job, only to be hired, more like "transferred" to Microsoft's hardware division.

Let's just call it what it really is, his bonus for trashing nokia so that MS could buy them up cheap and sell phones.

posted on 01 May 2014, 16:34 2

6. SamDroid (unregistered)


Still waiting on that Nokia Lumia 1520 running Android 4.4 Kitkat :(
And also the Lumia 1020, maybe that awesome camera would have had its maximum potential unleashed if it had had Android on it, most devs would have a field day ;)

posted on 01 May 2014, 16:37 4

7. tedkord (Posts: 4825; Member since: 17 Jun 2009)


Trojan horse is nice work if you can get it.

posted on 01 May 2014, 20:47 2

23. joey_sfb (Posts: 2932; Member since: 29 Mar 2012)


http://en.m.wikipedia.org/wiki/Stephen_Elop

He is a professional Trojan horse. Every company that made him a CEO end up being sold. Check his career in wiki.

posted on 01 May 2014, 17:02 4

12. snowgator (Posts: 3210; Member since: 19 Jan 2011)


For years I defended this man. I did. I still do not see home as a Trojan Horse unless the entire Nokia board of directors were in on it.

BUT.... This is just painful to read and leaves me needing a shower at the same time. 33 million for a job he either bailed on half completed if you are generous or totally failed at if you are not.

Just feels wrong on every level.

posted on 01 May 2014, 17:30

13. GreekGeek (Posts: 806; Member since: 22 Mar 2014)


Did it for his own selfish interest I guess

posted on 01 May 2014, 17:32 5

14. networkdood (Posts: 6271; Member since: 31 Mar 2010)


How convenient - Elop, former MS employee goes to Nokia - lo and behold the company sells to MS - Elop is now back home and much richer...yup, this was not planned at all...

posted on 01 May 2014, 17:54 1

15. Doakie (Posts: 1256; Member since: 06 May 2009)


So who is a more hated short term CEO: Stephen Elop, or Leo Apotheker?

posted on 01 May 2014, 23:37

31. 0xFFFF (Posts: 3092; Member since: 16 Apr 2014)


Probably Elop. He killed something good. While Apotheker was a terrible crook, Carly Fiorina had already ruined HP.

posted on 01 May 2014, 18:57 1

19. express77 (unregistered)


Compensation. LOL. You son of a b***h.

posted on 01 May 2014, 20:12

21. CX3NT3_713 (Posts: 1926; Member since: 18 Apr 2011)


Wow!! He hit a lick, with Nokia $$$$

posted on 01 May 2014, 20:20

22. Deaconclgi (Posts: 276; Member since: 03 Nov 2012)


Stupid and misleading title AGAIN!!!!

posted on 01 May 2014, 21:14

24. Liveitup (Posts: 1260; Member since: 07 Jan 2014)


Nokia did not lose with WP, according to Kantar world panel the OS grew in More Places than any other OS. Elop made the right choice, its not like Nokia did not have a board of directors who influenced decisions. Every other OS has adopted the Windows Phone flat UI trend instead of Skeuomorphism, haters gonna hate, it is what it is.

New smartphones will still be coming with the brand Nokia attached for sometime to come, the same employees will be making those devices. Nokia may have changed hands but the people who made Nokia the brand it is today still remains and are working on future Lumias they just have more money now to show of that greatness, how is that a bad thing?, its a great thing.

posted on 01 May 2014, 22:20 2

25. sgodsell (Posts: 1255; Member since: 16 Mar 2013)


Growth is easy when you have little to no sales to begin with. 30 million WP sold last year in 2013. Android sold 796 million. Apple sold 150 million. There was 1 billion smart phones last year. So WP has 3% of the market. Nokia sells over 90% of all WP devices and not only did lumia sales drop last quarter to 8.2 million. Nokia declined 30% in sales for this quarter in Q1 2014. Also if its doing so well. Why is Microsoft giving away free WP this weekend if you go into a Microsoft store? Is it because they are selling well. No its the exact opposite. The are desperate for sales and revenue for WP. Why else do you think they released 3 nokia X devices running Android instead of using WP.

posted on 01 May 2014, 23:41 2

32. 0xFFFF (Posts: 3092; Member since: 16 Apr 2014)


Kinda all over the map on this one, eh? Just drink a double of the MS kool aid?

posted on 01 May 2014, 22:22 1

26. StraightEdgeNexus (Posts: 3356; Member since: 14 Feb 2014)


Trojan horse: Job done.
Microd*ck: here's your reward $33m.

posted on 01 May 2014, 22:37

27. ysk79 (Posts: 19; Member since: 06 Jan 2014)


lesson learnt...screwing up pays millions if done at the highest level

posted on 01 May 2014, 22:38 2

28. lyndon420 (Posts: 1743; Member since: 11 Jul 2012)


Elop did as he was told. Infiltrate and devalue the company...now pay the man lol.

posted on 01 May 2014, 22:50 4

29. Rocksteady (unregistered)


What makes me feel bad reading this article, is remembering the huge amount of job cuts at Nokia, many employees were given the pink slip to save operation expenses, and the Nokia board considers this payment for Elop okay.
sacrificing many people's jobs for one man's greed.

Nokia,,,fingering people.

posted on 02 May 2014, 07:12

34. skinny95black (Posts: 113; Member since: 06 Jan 2013)


DNokia's me elop for every thing the board of directors has a lot responsibility even tge former president of Finland is member of the board

posted on 02 May 2014, 07:29

35. skinny95black (Posts: 113; Member since: 06 Jan 2013)


Sorry for this comment what I wanted to say is don't blame elop for every thing the board of directors is also responsible big time even the former president of Finland is one of them the ceo doesn't have an absolute judgement they are also responsible

posted on 02 May 2014, 07:44

36. 7thspaceman (Posts: 1087; Member since: 14 Feb 2011)


I might sound crazy but now that Mr Elop is a Millionaire now. He might retire Early. Why not? If He buys a moderate house and car and budgets his money right it's smooth sailing. Microsoft is not going to pay him a million a year to be in charge of his division of Microsoft.
The only job that would give him a million a year payday is to become a CEO of another company.

posted on 02 May 2014, 13:48 1

37. SIGPRO (Posts: 447; Member since: 03 Oct 2012)


This guy is a rat! Made Nokia go under!

Want to comment? Please login or register.

Latest stories