Microsoft purchase of Nokia makes Elop $33 million richer

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

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35 Comments

1. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Time for him to get a new Learjet.

8. giani

Posts: 269; Member since: Nov 13, 2012

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

9. tedkord

Posts: 17318; Member since: Jun 17, 2009

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

10. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

lol. And probably a lot faster XD

17. akki20892

Posts: 3902; Member since: Feb 04, 2013

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

11. PBXtech

Posts: 1032; Member since: Oct 21, 2013

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

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!

18. akki20892

Posts: 3902; Member since: Feb 04, 2013

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

30. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

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

33. Ashoaib

Posts: 3276; Member since: Nov 15, 2013

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

2. corporateJP

Posts: 2458; Member since: Nov 28, 2009

This guy... ii❕ii

16. akki20892

Posts: 3902; Member since: Feb 04, 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.

3. tech2

Posts: 3487; Member since: Oct 26, 2012

Did I read that right, 5.5 mil in CASH ?! http://img.gawkerassets.com/img/17kdjxvdqvygyjpg/ku-xlarge.jpg

4. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Of course, Mr. McDuck earned his money. Edit: ....he changed his comment.

5. sprockkets

Posts: 1612; Member since: Jan 16, 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.

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 ;)

7. tedkord

Posts: 17318; Member since: Jun 17, 2009

Trojan horse is nice work if you can get it.

23. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

12. snowgator

Posts: 3621; Member since: Jan 19, 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.

13. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Did it for his own selfish interest I guess

14. networkdood

Posts: 6330; Member since: Mar 31, 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...

15. Doakie

Posts: 2478; Member since: May 06, 2009

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

31. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

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

19. express77 unregistered

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

21. CX3NT3_713

Posts: 2349; Member since: Apr 18, 2011

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

22. Deaconclgi

Posts: 405; Member since: Nov 03, 2012

Stupid and misleading title AGAIN!!!!

24. Liveitup

Posts: 1798; Member since: Jan 07, 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.

25. sgodsell

Posts: 7225; Member since: Mar 16, 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.

32. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

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

26. StraightEdgeNexus

Posts: 3689; Member since: Feb 14, 2014

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

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