Stephen Elop to get $25.5 million from Nokia when Microsoft deal closes

Stephen Elop was a high-ranking executive at Microsoft before heading over to Nokia in September 2010 to be its CEO. Now that Elop is planning to head back to Microsoft after the company's deal to buy Nokia's devices and services business closes, Nokia will be giving Elop a nice going-away present.

The Wall Street Journal reports that, in a regulatory filing today, Nokia announced it will offer Elop a total of €18.8 million (about $25.5 million) when he leaves the company. Elop resigned as Nokia's CEO immediately after the deal was announced a few weeks ago but remains as its executive vice president of its devices and services division. Nokia Chairman Risto Siilasmaa is currently serving as the company's interim CEO.

The regulatory filing shows that Elop will get €14.6 million in equity compensation, along with another €4.2 million in salary and bonuses from Nokia. Elop is currently supposed to head up Microsoft's hardware unit when he returns to the company in the first quarter of 2014. Some have speculated Elop might become Microsoft's new CEO after its current leader Steve Ballmer retires sometime in the next year.

Source: Wall Street Journal | Image via Nokia

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33 Comments

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Haters gonna hate. Still doesn't change the fact that Elop set the company on the road to recovery, and helped Windows Phone take off. Would never have happened with subsidized Android sets, and no exclusive partnership.

Dot Matrix said,
and helped Windows Phone take off

Yes, Mr. Elop really helped MS to succeed, in detriment of Nokia (the company he ran), who was bought off. You should agree that he seemed to act in the best interests of MS, not Nokia... the company where he was CEO. The Nokia buyout seals both a victory for MS and a failure for Nokia, as a company.

Yes this man has done a pretty good job at Nokia. However, 25 million is ludicrous! I can name a few people in my life who have been a greater benefit to society. From saving lives in the ER to teaching some of these self entitled brats in the our school system.

coderchi said,
I assure you Steve Jobs had more and didn't do neither of those... I know you love your Apple's Juice.
I love technology. I have a device in my house from every single competitor including RIM. Your comment about Apple juice is null. I respect technology and respect the good effort all of these companies put into their products. I am not a child who latches unto one toy. There are many other toys out there just as good or better. I don't wear blinders on my eyes, therefore I can see an excellent product, such as some of Apple's products, more clearly than the blind fanatics.

coderchi said,
I assure you Steve Jobs had more and didn't do neither of those... I know you love your Apple's Juice.

At least he did not destroy a company like Carly Fiorina did... and still she cashed out around $21 million...

Stephen Flop the Trojan Horse, ditched Symbian, wrecked Nokia and eventually lobbied its board to sell of Nokia's smartphone division to MS.. Well played indeed.

yowanvista said,
Stephen Flop the Trojan Horse, ditched Symbian, wrecked Nokia and eventually lobbied its board to sell of Nokia's smartphone division to MS.. Well played indeed.

You seem to be completely ignoring Nokia's financial position prior to his involvement... LOL

Spicoli said,
People buying phones ditched Symbian and not Nokia.

True and this could be a big issue for MS... Unless the first smartphone that will be launched as MS/whatever the name will be is a top device for "general user", a device like the 920 for example.
If the deal will go through MS needs to execute it as Lenovo did it when they bought IBM: same high hardware standard, keep up releasing unique and frequent updates and apps etc.

While I think Elop did a great job as Nokia's CEO (he set a solid basis and things were turning around)., the fact that Nokia was sold to MS should not be considered a victory. I know some shareholders are in the business of merging companies to artificially raise their value (and then selling their shares before the new organization can screw up) but most shareholders are not.

There are some that believe Elop was a troyan horse. IMO Nokia being bought by MS isn't in Microsoft's best interest. On the phone-market they have no zero real partners. All the others OEMs will drop MS completely if need be. None of them are all in. This can really kill the momentum Windows Phone has had the past year.

sanke1 said,
He was a Trojan Horse and a very successful horse at that.

If he was a troyan horse then yes he was very successful. He actually got Nokia in pretty good shape and very experienced with WP.

However I don't see Microsoft buying their only partner as a step in the right direction. If Nokia could be successful with Windows Phone on their own then it could motive the likes of HTC and Samsung to go all in as well.

In the long run I think Microsoft will regret the need for this purchase (if they don't do already). Especially when they do away with the Nokia brand then they will notice it in marketshare in Europe and Asia.

Ronnet said,

If he was a troyan horse then yes he was very successful. He actually got Nokia in pretty good shape and very experienced with WP.

However I don't see Microsoft buying their only partner as a step in the right direction. If Nokia could be successful with Windows Phone on their own then it could motive the likes of HTC and Samsung to go all in as well.

In the long run I think Microsoft will regret the need for this purchase (if they don't do already). Especially when they do away with the Nokia brand then they will notice it in marketshare in Europe and Asia.

I am just thinking aloud, so to speak, but I am convinced that MS final push had something to do with the approaching of the end of their previous agreement which, if I remember correctly, will expire in 2014.

sanke1 said,
He was a Trojan Horse and a very successful horse at that.

If this were the end game, they would have purchased the company prior to the turnaround, when it would have been cheaper, no? LOL

The argument that he was a trojan horse is just ridiculous.

Fritzly said,

I am just thinking aloud, so to speak, but I am convinced that MS final push had something to do with the approaching of the end of their previous agreement which, if I remember correctly, will expire in 2014.

Agreed.

M_Lyons10 said,

If this were the end game, they would have purchased the company prior to the turnaround, when it would have been cheaper, no? LOL

The argument that he was a trojan horse is just ridiculous.

You have to also convince the current owners to sell. I don't believe he was a Trojan horse. I think both side were in on the plan. He comes in, gets WP8 going, and increases the value of the company to where the owners are happy with the buyout. They also did things like the Siemens buyout that didn't make sense at the time but do now.

Nokia was in trouble before Elop came around. I bet nokia would be doing much better if they didn't sell their devices and continued to make cheaper smart phones.

JasonMiles said,
Achievement unlocked, Nokia burned to the ground. Congrats Mr. Elop, enjoy your cash bonus.

I'd suggest actually looking at the facts here... Nokia was in big trouble way before he became involved, and Elop was able to slow the bleeding and turn the company around... That is not a simple thing, nor is it fast. But he certainly had a hand in the turnaround (Though not completed) of this company.

majortom1981 said,
Nokia was in trouble before Elop came around.

True, but it was no surprise to see a former Microsoft executive decide to go Windows Phone exclusive and then ride things out until a buyout. There was no way the company could have survived on its own, with its cash reserves diminished and its market share plummeting - analysts had written off the company altogether, valuing its stock as "junk". The Lumia range was starting to show signs of growth but it wouldn't have been enough to keep the company afloat.

He lined himself up for a nice windfall and so he was obviously very shrewd.

majortom1981 said,
Nokia was in trouble before Elop came around. I bet nokia would be doing much better if they didn't sell their devices and continued to make cheaper smart phones.

Uh what? if they didnt sell their device business?
The market thinks otherwise, 70% gains on Nokia in the last two weeks.

But, i think the market is right. The device business was flsuhing profits down the toilet, without it they gain remain afloat for a very long time, and regain profits. The question is, what if they could have gained good traction with windows phone?

JasonMiles said,
Achievement unlocked, Nokia burned to the ground. Congrats Mr. Elop, enjoy your cash bonus.

Like others said, Nokia was almost ran into the ground before he came around. I used to own Nokia N Series handset after another and then I hadn't even heard their name for years. Yes they are still struggling but doing much better especially in European markets and also starting to make traction in some emerging markets with their aggressive pricing on quality handsets. Going exclusively with Windows Phone was a risky move but if they tried to become yet another Android device maker do you really think they were going to become relevant at all with Samsung pretty much leading the market and then fighting against other established brands like HTC, Motorola, etc.

majortom1981 said,
Nokia was in trouble before Elop came around. I bet nokia would be doing much better if they didn't sell their devices and continued to make cheaper smart phones.

Not according to "analysts". Android saves all!

/s