Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Microsoft to Pay Lion's Share of Elop's $25.5 Million Nokia Termination Package

Nokia's (NYSE: NOK  ) Stephen Elop will get $25.5 million as the result of an amendment to his service contract that has him resigning from the company's board of directors and from his positions as Nokia's president and CEO, retroactively effective to Sept. 4, the day after Nokia signed a purchase agreement with Microsoft (NASDAQ: MSFT  ) , according to a Nokia filing with the SEC. Microsoft will pay 70% of Elop's compensation package, and Nokia will contribute the remaining 30%.

Nokia said the amount includes Elop's base salary and equity awards of more than $19.5 million, according to The Associated Press.

"Mr. Elop will serve as Executive Vice President of Devices & Services until the Closing [on Microsoft's purchase of Nokia's phone business], after which it is anticipated that he will become employed with Microsoft pursuant to the terms of an employment agreement with Microsoft," read the filing.

On Sept. 3, Microsoft entered into an agreement with Nokia to buy substantially all of Nokia's devices and services business, license Nokia’s patents, and license and use Nokia's mapping services for $7.4 billion in cash. Microsoft expects the transaction to close during the first quarter of 2014, subject to Nokia shareholder approval and regulatory approvals.

Before becoming the first non-Finnish CEO of Nokia in September of 2010, Stephen Elop was head of Microsoft's business division.

Microsoft CEO Stephen Balmer will retire by the end of next August, according to the company's announcement on Aug. 23. Microsoft has yet to announce a replacement for Balmer, though some speculate Elop is in line for the job.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 22, 2013, at 12:46 AM, techy46 wrote:

    Nokia blew it way before Elop took over and they're lucky that he give them an opportunity to salvage $4 PS for the 1.8 bilion shares trhat 50% of the company represents. Without the $1 billion a year for 2011 and 2012 from Microsoft Nokia might be in real deep dodo. They don't take prisioners in business.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2647112, ~/Articles/ArticleHandler.aspx, 9/25/2016 8:24:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
MSFT $57.43 Down -0.39 -0.67%
Microsoft CAPS Rating: ****
NOK $5.66 Down -0.08 -1.39%
Nokia CAPS Rating: **