Stephen Elop to get $33.4 million 'golden parachute' from Nokia

Stephen Elop may now be working for Microsoft as head of its hardware division, but he will still be getting a nice "golden parachute" payment from his former company, Nokia. In fact, his final payday from Nokia will be much higher than originally announced.

Reuters reports that Elop will now receive a total of 24.2 million euros ($33.4 million) in cash and stock from Nokia for serving as its CEO from 2010 to 2013 and as its executive vice-president for the last few months until last week's transfer of the smartphone division to Microsoft.

Originally, Elop was supposed to get "just" 18.8 million euros ($25.5 million) from Nokia when the deal was announced in September. However, the company's stock price has been going up since then which caused his final fee to become much higher. Microsoft will actually be paying 70 percent of Elop's severance package as part of its deal to purchase Nokia's Devices and Services division.

With Elop now the head of Microsoft's devices division, and working under its new CEO Satya Nadella, it will be interesting to see if he can lead the company's charge in improving its efforts to sell more hardware products, particularly with new Windows Phone models.

Source: Reuters | Image via Nokia

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Wow eye watering amount of money

Shame that always these ex-CEO's get huge payouts when the business they were responsible during their time fails.

Happens at lot in UK, RBS (sic) is one name that comes to mind!
oh and the huge pension pot that they get too...

Simon Fowkes said,
Wow eye watering amount of money

Shame that always these ex-CEO's get huge payouts when the business they were responsible during their time fails.

Happens at lot in UK, RBS (sic) is one name that comes to mind!
oh and the huge pension pot that they get too...


It is shameful that he's getting that kind of payout, but Nokia didn't fail. If they did then why would MS want them?

How is that logically where my statement leads? I think consensus is that he didn't do the greatest job in the world running Nokia, that's a lot of money for being average.

No he did not do a very good job, first failure with Symbian (what was left over from Palm OS) then CEO of Nokia while the company hugely declined against Apple/Samsung which in turn grew immensely. Nokia would of gone the way of Blackberry had Microsoft not bought up the handset division. So he basically was rewarded for failure, usual story anyway, so nothing new and I am not surprised any more by any of this...

Stokkolm said,
How is that logically where my statement leads? I think consensus is that he didn't do the greatest job in the world running Nokia, that's a lot of money for being average.

You can not say that because HTC is the evidence what would have happened if Nokia went head to head against Samsung AFTER Samsung had so much time to spread their reign.

If Nokia took up Android since start, it would have been anybody's game.
Since they delayed too late (wasting time on Symbian, meego, maemo), by the time Elop joined, Nokia had no chance in Android game.

Christ! Runs the company into the ground and still gets this amount of money. Not to mention the money he received from Microsoft for delivering Nokia. Incredible.

It's a shame when you think about how successful Nokia used to be. There is really no conceivable reason why Nokia could not be where Samsung is today. The fact that Elop jumped from one burning platform in Symbian over to another burning platform in Windows Phone OS doomed them from the beginning.

MindTrickz said,

It's a shame when you think about how successful Nokia used to be. There is really no conceivable reason why Nokia could not be where Samsung is today. The fact that Elop jumped from one burning platform in Symbian over to another burning platform in Windows Phone OS doomed them from the beginning.


Blame it on Nokia Board and previous CEO. By the time Elop joined, it was already too late for Nokia to go Android.

MindTrickz said,
Christ! Runs the company into the ground and still gets this amount of money. Not to mention the money he received from Microsoft for delivering Nokia. Incredible.

It's a shame when you think about how successful Nokia used to be. There is really no conceivable reason why Nokia could not be where Samsung is today. The fact that Elop jumped from one burning platform in Symbian over to another burning platform in Windows Phone OS doomed them from the beginning.


Windows Phone is not failing. It's a better platform than Android.
The reason that Android is doing better than iOS is because all iOS devices are premium devices.
Android is far from solid, it's a major resource hog and it's not as open source as you think it is.
I recommend Windows Phone to anyone who asks me of their opinion. The OS itself is more stable, better at handling the hardware and just more thought through. It has the NT kernel and MS' goal is for all apps to work on phones, tablets and PC's.
I'm not going to buy an Android device ever again.
Each phone manufacturer has to compile the whole OS every time they want to update or change anything that's not delivered in an APK file.
Windows Phone can be pushed to devices without the phone manufacturer's approval process.
Windows Phone 8.1 works on all devices that currently run Windows Phone 8.
The devices are more secure because they require a TPM module for the OS to work, to prevent malicious rooting (some rooting is bad).
The amount of custom ROMs of Android is proof that Android is less of a solid product than you think.
Phones with Android 2.x are still sold today because of intense greed and the devices can not be upgraded because they are too old or the drivers needed can't be obtained.
Android is crumbling around its edges while Windows Phone is still growing and you can't tell what the end result will be just yet.

Crimson Rain said,

Blame it on Nokia Board and previous CEO. By the time Elop joined, it was already too late for Nokia to go Android.

It is never too late. Apple was in a bad shape when Jobs took over it the 2nd time.

MindTrickz said,

The fact that Elop jumped from one burning platform in Symbian over to another burning platform in Windows Phone OS doomed them from the beginning.

The ironic thing is, it (Symbian) only became a burning platform after Elop announced it in that memo. Sure it was losing traction, but nothing like what happened when Elop came in. It's now called the Elop Effect after the Osborne effect, whereby a CEO trashes their own product so openly that it's a self fulfilling prophesy.


The memo has since been called the most damaging memo in corporate governance. Nokia's Chairman Jorma Ollila reprimanded Elop for it at a Board Meeting.

https://en.wikipedia.org/wiki/....22Burning_Platform.22_memo

That's quite a handsome reward for destroying a company indeed.

simplezz said,

The ironic thing is, it (Symbian) only became a burning platform after Elop announced it in that memo. Sure it was losing traction, but nothing like what happened when Elop came in. It's now called the Elop Effect after the Osborne effect, whereby a CEO trashes their own product so openly that it's a self fulfilling prophesy.


https://en.wikipedia.org/wiki/....22Burning_Platform.22_memo

That's quite a handsome reward for destroying a company indeed.


Symbian was dead well before that memo. It would have continued to be dead even if that memo wasn't released.

it was an amazing OS during its time but it really couldn't compare with iOS or Android when they were released.

simplezz said,

The ironic thing is, it (Symbian) only became a burning platform after Elop announced it in that memo. Sure it was losing traction, but nothing like what happened when Elop came in. It's now called the Elop Effect after the Osborne effect, whereby a CEO trashes their own product so openly that it's a self fulfilling prophesy.


https://en.wikipedia.org/wiki/....22Burning_Platform.22_memo

That's quite a handsome reward for destroying a company indeed.

Symbian was an inferno before he said that. Symbian was really dated and just pretty crappy overall. Android had all but killed it already.

That said, it probably wasn't the best idea business-wise to write the memo or let it get leaked. It hurt Nokia's sales of their Symbian phones. Even though Symbian was doomed they would have sold more if they didn't flat-out say that it was a dead-end for their company. The consumers benefited from that memo though as it let people avoid buying smartphones which would get no more real support or apps or anything.

Looking at what happened, Nokia went in the right direction with Symbian. They could try to save it like BB and see how is that working for them. At least Elop had balls and moved in a direction where he thought would gain traction. With Android they'll be playing against Samsung which already ruled.

I think it was a smart move, and overall, it has made Windows Phone way better. I had a Samsung Focus when it first came out. I will never ever get a Samsung phone again. It is the cheapest #### phone in the world. Build quality of a Nokia phone is amazing, it just feels much better to hold and doesn't seem like it'll break if you rough handled it.

Crimson Rain said,

Blame it on Nokia Board
This. Why do companies offer these stupid things? Its not exactly an incentive to do well, IMO. Of anything, its a reason to get stock prices up (regardless of how or long term costs) and to bail.

I'm not targeting Elop specifically. Its a CEO issue, and from what I understand a very common thing here in the US.

neoxphuse said,
Looking at what happened, Nokia went in the right direction with Symbian. They could try to save it like BB and see how is that working for them. At least Elop had balls and moved in a direction where he thought would gain traction. With Android they'll be playing against Samsung which already ruled.

I agree, Nokia didn't have many options but Windows Phone was their best choice. They could go to WP, go to Android, or try and keep Symbian or Meego alive.

Android is dominated by Samsung who is winning thanks to raw specs and good marketing. They throw pretty much every possible feature in. Nokia never was like that. They barely even include microSD slots on their phones but have been doing so a bit more often lately. Look at HTC, once one of the most powerful (though unknown) smartphone manufactures. They used to be the biggest Android OEM but they're struggling now, doing the same things that Nokia does (stubbornly leave out features like SD cards).

Symbian and Meego had no chance.

WP was the best they could do. And if they just threw everything into their phones it might have worked out better. Also would have helped if Microsoft wasn't developing WP at a snail's pace.

Radium said,

Windows Phone is not failing. It's a better platform than Android.

If that were the case, Windows wouldn't be at 3% and falling.

Radium said,

The reason that Android is doing better than iOS is because all iOS devices are premium devices.

In terms of marketshare, Apple devices can't compete because their product only appeals to a narrow cross-section of consumers, namely, those who accept the limited diversity of Apple hardware, as well as deep pockets of course.

Radium said,

Android is far from solid, it's a major resource hog and it's not as open source as you think it is.

Android itself isn't a resource hog, but if you leave enough apps running in the background etc it can. But that's the case with any truly multitasking OS. This isn't Windows Phone, where third party multitasking is only a dream.

As far as open source is concerned, AOSP is completely open source. Anyone can take the source and build a custom rom, as evidenced by Cyanogen Mod, Amazon, and Nokia. If you're talking about Google's services, well, that's interfacing with their servers, and they are perfectly within their rights to restrict that, just as Facebook, Twitter, and Microsoft all do.

Radium said,

I recommend Windows Phone to anyone who asks me of their opinion. The OS itself is more stable, better at handling the hardware

Really? What's the Nokia X for then?

Radium said,

and just more thought through.

If you like sitting through endless animations that try to hide the delays, then sure. Most people I know who've used a WP for more than a week get sick of it pretty quick and return to Android. Especially when they realise there's only fart apps in the store.

Radium said,

It has the NT kernel

lol. Is that some kind of badge of honour? A blackbox isn't interesting at all. Now the Linux kernel, I can actually see what's going on with that and get excited about it.

Radium said,

goal is for all apps to work on Windows only phones, tablets and PC's.

FTFY. I'll believe it when I see it. MS has been talking about write once run anywhere (well Windows) for at least half a decade, and I've yet to see a real world application run across all Windows versions unmodified.

Radium said,

Each phone manufacturer has to compile the whole OS every time they want to update or change anything that's not delivered in an APK file.

That's how open source code works. I know it's a foreign concept in the proprietary world of Windows, where everything is expensive, and programs are precompiled blackboxes that often come with nasty surprises (malware, viruses, rootkits, keyloggers). I for one prefer the idea that I can take the code and play around, learn from it, or let other people do that and create great mods (Cyanogen).

Radium said,

Windows Phone can be pushed to devices without the phone manufacturer's approval process.

Even the carrier? Those delays I always hear about must be my imagination...

Radium said,

Windows Phone 8.1 works on all devices that currently run Windows Phone 8.

Quite an achievement for a .1 update. It's a shame 7.5 users didn't get the same treatment. Especially those who bought the Lumia 900, then found out 3 months later that it's obsolete and won't get the 8 update, but instead a crippled 7.8.

Radium said,

The devices are more secure because they require a TPM module for the OS to work, to prevent malicious rooting (some rooting is bad).

Oh good old vendor lockin. Like its PC counterpart secureboot, I'm sure people were lining up to get a phone with a TPM module.

Radium said,

The amount of custom ROMs of Android is proof that Android is less of a solid product than you think.

So because there's more choice and variety in Android, it's a less solid product? Your logic is undeniable..

Radium said,

Phones with Android 2.x are still sold today because of intense greed and the devices can not be upgraded because they are too old or the drivers needed can't be obtained.

When code is open source, people can fork and use whatever versions they like. Greed has nothing to do with it.

Radium said,

Android is crumbling around its edges while Windows Phone is still growing and you can't tell what the end result will be just yet.

I love a good piece of fiction, cool story bro :D

MindTrickz said,
There is really no conceivable reason why Nokia could not be where Samsung is today.

Except for every reason Samsung is where it is today... When Google released Android "for free" they provided a consistent UX that was destined to broad success and the commoditization of smartphone hardware. The IP around Symbian which Nokia had invested in to keep competitors at bay became worthless in just a couple years. Whichever OEM owned adequate industrial and marketing might could win the prize. Samsung was just the first mega conglomerate to realize this. Samsung is special (though perhaps not unique) among OEMs present in Western markets because it owns a wide range of production for the parts going in their phones. As a leading producer in high-performance display panels, ram and processors, they're able to ship massive volumes of devices from low to high end at a cost to them that allows for profit margins of which Nokia could only dream. Samsung's endlessly deep pockets and marketing synergy from its successful ventures in literally dozens of industries (from construction to insurance to shipbuilding to retail to amusement parks) don't hurt either. The scales of the two corporations just aren't comparable. We're talking revenues over $250 billion for Samsung versus around $12 billion for Nokia. I think it's harder to think of any good reasons why Nokia could be in the position of Samsung at this point.

This isn't to say that Nokia couldn't carved out a modest profit in the Android game. But they would always be a David to the Samsung Goliath.

Sony is really the one who could have taken the place of Samsung had they played their cards right.

Edited by Patrick Marston, Apr 30 2014, 7:19pm :

If that were the case, Windows wouldn't be at 3% and falling.

Last I checked, which is every single quarter, Windows Phone is posting gains.

Android itself isn't a resource hog, but if you leave enough apps running in the background etc it can. But that's the case with any truly multitasking OS. This isn't Windows Phone, where third party multitasking is only a dream.

Sure sure, have you even bothered to use a Windows Phone? Because if you did you'll find that it does work. You don't need to have the app running in the background constantly. Especially not on a screen where you can only do one thing at a time.

If you like sitting through endless animations that try to hide the delays, then sure. Most people I know who've used a WP for more than a week get sick of it pretty quick and return to Android. Especially when they realise there's only fart apps in the store.

What delays? My lumia 900, yes 900, runs smoother than most Android phones. And only fart apps in the store, sure sure.

That's how open source code works. I know it's a foreign concept in the proprietary world of Windows, where everything is expensive, and programs are precompiled blackboxes that often come with nasty surprises (malware, viruses, rootkits, keyloggers). I for one prefer the idea that I can take the code and play around, learn from it, or let other people do that and create great mods (Cyanogen).

Yup that's why I've had 0 malware, 0 viruses, 0 rootkits, and 0 keyloggers on my windows machine in over a decade now.

What was heartbleed again? Oh wait a second it affected an open source program called OpenSSL and did some nasty nasty damage.

Even the carrier? Those delays I always hear about must be my imagination...

You can update your phone without waiting for the carrier to push the update. It's not that difficult and takes 2 braincells to do.

Sure it's not the "100% official" way but it works and you get the exact same thing, just faster. If you're going to claim well it's not the same thing, then Android suffers from the exact same problem.

Quite an achievement for a .1 update. It's a shame 7.5 users didn't get the same treatment. Especially those who bought the Lumia 900, then found out 3 months later that it's obsolete and won't get the 8 update, but instead a crippled 7.8.

Windows Phone 8 wasn't a .1 update to WP 7.5. It was a massive update. Sure it sucks that nobody on 7.5 got the update but there were legitimate reasons. Unlike HTC and their "oh we released the phone, time to dump it into the trashcan and work on a new version that looks and runs exactly the same".

Oh good old vendor lockin. Like its PC counterpart secureboot, I'm sure people were lining up to get a phone with a TPM module.

Good old vendor locking? The #### are you talking about?

There are plenty of Android devices that have an encrypted bootloader that make it pretty dam difficult to replace the firmware and OS. And Secureboot wasn't vendorlocking so please stop spreading your trashy FUD.

Radium said,

Windows Phone is not failing. It's a better platform than Android.
Wow! That is a very bold and debatable statement. Millions would definitely disagree.

JHBrown said,
Wow! That is a very bold and debatable statement. Millions would definitely disagree.

And millions would agree with the original statement.

Just because millions disagree that chocolate ice cream is the best flavor, doesn't mean millions don't think it is.

rfirth said,

And millions would agree with the original statement.

Just because millions disagree that chocolate ice cream is the best flavor, doesn't mean millions don't think it is.

Funny how the Windows Phone guys resort to food analogies. Rfirth, I'm just looking at hard cold numbers. They speak for themselves.

JHBrown said,
Funny how the Windows Phone guys resort to food analogies. Rfirth, I'm just looking at hard cold numbers. They speak for themselves.

And? He never said Windows Phone was the most popular OS in the entire world and nobody hates it.

He said millions agree that WP is a better OS. And that is true, it's estimated that 47 million people will be sold by the end of the year. Sure there are hundreds of millions of people on Android but that doesn't mean millions don't like WP. And that's exactly what is his point was.

Maybe you should stick to remembering whether or not you actually bought that 4K tv.

-Razorfold said,

And? He never said Windows Phone was the most popular OS in the entire world and nobody hates it.

He said millions agree that WP is a better OS. And that is true, it's estimated that 47 million people will be sold by the end of the year. Sure there are hundreds of millions of people on Android but that doesn't mean millions don't like WP. And that's exactly what is his point was.

Maybe you should stick to remembering whether or not you actually bought that 4K tv.

You still cannot find the elusive post claiming a 4k television. Grow up man. You sound like a child. Secondly, are you actually throwing around estimated numbers? This basically establishes and confirms what we've known from your posts.

Edited by JHBrown, Apr 30 2014, 11:20pm :

JHBrown said,
You still cannot find the elusive post claiming a 4k television. Grow up man. You sound like a child. Secondly, are you actually throwing around estimated numbers? This basically establishes and confirms what we've known from your posts.

1. There are already millions of people using Windows Phone. There are an estimated 1 billion or so smartphones in use right now. WP has 3.9%, and growing, marketshare. That works out to be 35-40 million in use right now. 50 million by the end of 2014 isn't that farfetched.

2: Check your messages.

JHBrown said,
Wow! That is a very bold and debatable statement. Millions would definitely disagree.

I know a few Samsung owners that hate the Hell outta their phones. In fact, two just sent theirs back for refunds. Just because millions use it, they all love it. Android has a host of problems (many by design) that need addressed before "disagreeing" with Radium's statement.

JHBrown said,
Funny how the Windows Phone guys resort to food analogies.

I actually first wrote it using a different, non-food, analogy. But then I decided to change it to be ice cream.

But since you're above mixing food and technology, tell me again how buttery smooth Ice Cream Sandwich made Android... d'oh!