stephen elop

It was announced a couple of weeks ago that Microsoft is going to acquire Nokia’s core phone business for more than $7 billion. The Finnish manufacturers shareholders have yet to approve the deal, and if they do, the former Nokia boss Stephen Elop will net a $25 million payday, as per current projections. As part of the deal between both companies, Elop will move back to Microsoft. Redmond will pay 70 percent of the projected total amount of $25 million while the remainder will be doled out by Nokia. This figure is made up primarily of accelerated vesting of his outstanding equity awards, 18 months of base salary and a short term management cash bonus.

Nokia, which was once a titan in the industry, has seen its market share decrease rapidly over the last few years. Elop was appointed to the top slot almost three years ago, during his tenure the company’s stock price has dropped by more than a third. Under the deal, Microsoft will get Nokia’s core phone business and nearly 32,000 employees. The fate of this deal hangs in the balance as shareholders have yet to decide if they want Redmond to take away the business that accounted for half of Nokia’s revenues last year. The meet on November 19th to put the matter to a vote.

Filed in General . Tags: Microsoft, Nokia and Stephen Elop. Source: reuters
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