Finnish media: Nokia pleads with Elop to accept smaller bonus (update: how did Elop granted $25M for selling Nokia handset unit?)

[snowComet]

Earlier on there are reports that Nokia ex-CEO, Stephen Elop will get a large paid off after he resigned as the CEO of Nokia, and this "enraged" some Finnish government officials, saying this is outrageous, " a threat to social harmony". According to the early Wednesday morning edition of Finland’s biggest newspaper Helsingin Sanomat, Nokia has asked former CEO Stephen Elop to take a smaller bonus in order to silence the protest and uproars. But Elop insisted that he should get a full payoff.

 

Besides, according to this BGR article, Elop's contract seems to have an interesting trick, as the article written,

 

 

 

Drama in Nokia’s home country escalated on Tuesday as it was revealed that Risto Siilasmaa, Nokiia’s chairman of the board, had misrepresented facts last weeks when he claimed that Elop’s bonus arrangements were similar to those of previous chief executives. Nokia was forced to admit on Tuesday morning that Elop had in fact received a contract that seemed to have been designed to guarantee a quick $25 million pay-off if Elop was able to sell the handset unit.

 

http://bgr.com/2013/09/24/nokia-elop-bonus-scandal/

 

*Update:For the selling handset unit granted him $25M story, it goes like this:

 

Nokia added a clause to Elop’s contract that “entitled [him] to immediate share price performance bonus in case of a ‘change of control’ situation… such as selling of Nokia’s handset division.” Unsurprisingly, this clause was not part of the previous Nokia CEO’s contract.

What’s even more striking, Kuittinen notes, is that “Elop’s bonus did not require an increase in Nokia’s share price” but instead “only required an increase in the share price from the absolute bottom… driving down the share price by 80% and then bouncing it a bit would be enough.”

http://bgr.com/2013/09/24/nokia-ceo-elop-contract-details/

Edited September 25, 2013 by snowComet

[Ssoele]

I call BS, $25M for a divorce? Also, how the f*ck did Nokia ever agree that he would get a $25M bonus when he would sell the handset unit?

[snowComet]

I call BS, $25M for a divorce? Also, how the f*ck did Nokia ever agree that he would get a $25M bonus when he would sell the handset unit?

For the selling handset unit granted him $25M story, it goes like this:

 

Nokia added a clause to Elop’s contract that “entitled [him] to immediate share price performance bonus in case of a ‘change of control’ situation… such as selling of Nokia’s handset division.” Unsurprisingly, this clause was not part of the previous Nokia CEO’s contract.

What’s even more striking, Kuittinen notes, is that “Elop’s bonus did not require an increase in Nokia’s share price” but instead “only required an increase in the share price from the absolute bottom… driving down the share price by 80% and then bouncing it a bit would be enough.”

http://bgr.com/2013/09/24/nokia-ceo-elop-contract-details/

[Yoinkerman]

don't put it in the contract if you don't want to pay it?  seems straightforward to me.

[Levis95l]

don't put it in the contract if you don't want to pay it?  seems straightforward to me.

 

Yeah, it's totally understandable that Elop want's the full 25 million when the contract says so. But he don't really deserve it, and hey, contracts are made to be broken, right?

 

Also Elop should be afraid. Even here in LTT forum someone has said that his goal in life is now to punch Elop in the face.