Former Nokia CEO Elop to receive $25.4mln pay-off

PanARMENIAN.Net - Former Nokia chief executive Stephen Elop, will receive a $25.4mln pay-off when Microsoft's deal to buy Nokia's handset business goes through, BBC News reports.

Under the deal, Elop will receive 18 months of his salary and money from incentive and share schemes.

Elop moved from Microsoft to run Nokia in September 2010 and will return to his former employer when the deal is completed. Microsoft will fund 70% of his pay-off, which has sparked anger in Finland.

The nation's Economy Minister, Jan Vapaavuori, reportedly said: "I find it difficult to understand the merits of this bonus."

Earlier this month Microsoft agreed a deal to buy Nokia's mobile phone business for $7.2bn. The purchase is set to be completed in early 2014, when about 32,000 Nokia employees will transfer to Microsoft.

Nokia shareholders are due to vote on the deal on November 19.

In information provided for shareholders ahead of that meeting, Nokia explained in detail Elop's compensation.

When the deal with Microsoft was signed on September 3, Elop agreed to step down as Nokia chief executive and take a new job at Microsoft when the deal is completed.

Due to that change Nokia says that he is entitled to 18 months of his salary and what Nokia describes as a "management short term cash incentive" which combined are worth $5.7mln.

He also is entitled to share awards worth $19.7mln.