Former Nokia boss pay-off rises as handset business sale finalized

PanARMENIAN.Net - Former Nokia chief executive Stephen Elop received a bigger-than-expected pay-off as the firm finalized the sale of it handset business to Microsoft, according to BBC News.

Elop got 24.2mln euros ($33.5mln) - 30% more than the initial figure.

A large part of that was awarded in Nokia shares, which have risen after the sale of the unit was agreed.

When first reported, the pay-off had sparked angry reactions in Finland, not least because Nokia's business declined under the leadership of Elop.

The country's economy minister, Jan Vapaavuori, had reportedly said at the time that he found it "difficult to understand the merits of this bonus".

Elop, a Canadian, became the first non-Finn to run the company when he took charge in September 2010.

Over the next three years, Nokia's fortunes plummeted as it was hurt by growing competition from rivals such as Apple and Samsung.

The company was eventually displaced by Samsung as the world's biggest mobile phone maker in 2012. As its sales declined, its share price also dropped - falling by more than half between September 2010 and 2013.

Nokia sold the handset business to Mircosoft last year for 5.44bn euros ($7.5bn). The deal was completed last week.

However, Nokia has said that Elop was entitled to the pay-off as part of his contract. The company said that 70% of the pay-off was funded by Microsoft.