Olli-Pekka Kallasvuo to receive multi-million pound payout in exit from Nokia as he is replaced by Microsoft’s Stephen Elop
Olli-Pekka Kallasvuo is to leave his position as president and chief executive officer of Nokia, to be replaced by Stephen Elop (pictured), the current president of Microsoft’s business division.
Kallasvuo has been with Nokia for more than three decades but will step down on September 20, also leaving his position on the Nokia board of directors. He will continue to chair the board of Nokia Siemens Networks in a non-executive capacity.
Nokia said that in accordance with the terms and conditions of his service contract, Kallasvuo is entitled to a severance payment consisting of 18 months gross base salary and target incentive which totals approximately €4.6 (£3.8) million. He will also receive as compensation the fair market value of the 100,000 restricted Nokia shares granted to him in 2007, which he is due to gain control of on October 1.
Elop will take up the role of president and chief executive officer on September 21. As well as Microsoft, Elop has worked with Juniper Networks, Adobe Systems and Macromedia in a number of senior executive positions.
He holds a degree in computer engineering and management from McMaster University in Hamilton, Canada.
Nokia board of directors chairman Jorma Ollila said: “The time is right to accelerate the company’s renewal; to bring in new executive leadership with different skills and strengths in order to drive company success.
“The Nokia board believes that Stephen has the right industry experience and leadership skills to realise the full potential of Nokia. His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company.”
Elop said: “Nokia has a unique global position as well as a great brand upon which we can build. The company has deeply talented and dedicated people, and I am confident that together we can continue to deliver innovative products that meet the needs of consumers.
“The Nokia slogan clearly states our key mission: Connecting People, which will acquire new dimensions as we build our portfolio of products, solutions and services.”