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.