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

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

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57 Comments

1. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

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

6. xperiaDROID

Posts: 5629; Member since: Mar 08, 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.

9. ScottSchneider

Posts: 336; Member since: Dec 06, 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...

10. pokharkarsaga

Posts: 547; Member since: Feb 23, 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

20. pookiewood

Posts: 631; Member since: Mar 05, 2012

+1 for Ubuntu

47. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

51. Alex123

Posts: 241; Member since: Oct 17, 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.

31. shashi.map

Posts: 31; Member since: Oct 16, 2011

God , I wish that could happen !!!

39. downphoenix

Posts: 3165; Member since: Jun 19, 2010

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

46. akki20892

Posts: 3902; Member since: Feb 04, 2013

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

22. RiseAgainst94

Posts: 281; Member since: Mar 03, 2012

Yeah, Elop is a tool.

26. asingha94

Posts: 295; Member since: Apr 08, 2012

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

23. rms.max

Posts: 95; Member since: Sep 26, 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 .

25. Reluctant_Human

Posts: 913; Member since: Jun 28, 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.

35. tacarat

Posts: 854; Member since: Apr 22, 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.

32. Caralho

Posts: 119; Member since: Jun 18, 2012

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

38. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

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

50. Alex123

Posts: 241; Member since: Oct 17, 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.

2. Rongocook

Posts: 76; Member since: Sep 20, 2013

It was always fishy!

18. Nathan_ingx

Posts: 4769; Member since: Mar 07, 2012

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

49. phil2n

Posts: 519; Member since: Apr 30, 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

3. Googler

Posts: 813; Member since: Jun 10, 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.

33. dorianb

Posts: 617; Member since: Oct 24, 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.

4. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 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.

5. shy2papa

Posts: 336; Member since: Jan 23, 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.

7. AhmadAlsayegh

Posts: 326; Member since: Jul 18, 2011

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

8. troutsy

Posts: 382; Member since: Feb 17, 2012

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

11. abhilashpro

Posts: 18; Member since: Jun 25, 2012

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

27. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

I do hope you’re being sarcastic.

12. TheLolGuy

Posts: 483; Member since: Mar 05, 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.

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