Manufacturer’s former chief executive to receive payment made up of 18 months of his salary, a cash bonus and proceeds from a share incentive scheme
Nokia’s former CEO Stephen Elop will receive a financial package worth $25.4 million (£16 million) when Microsoft’s deal to acquire Nokia’s mobile phone business is concluded.
The manufacturer said Elop will receive 18 months of his salary, a cash bonus and proceeds from a share incentive scheme. Microsoft will fund 70 per cent of the payment, with Nokia likely to fund the remaining 30 per cent.
Earlier this month, it was announced that Microsoft had agreed to buy Nokia’s mobile phone business for $7.2 billion (£4.6 billion), with the deal likely to be concluded in Q1 2014. Some 32,000 Nokia staff will transfer to Microsoft.
Elop stepped down from his position as CEO and became executive vice president of Nokia’s devices and services business, with the manufacturer expecting him to transfer to Microsoft when the acquisition goes through.
Nokia chairman of the board Risto Siilasmaa has assumed the position of interim CEO until a permanent successor to Elop is found.
Elop moved to Nokia from Microsoft in September 2010. Five months later in February 2011, Nokia signed a deal with Microsoft to make Windows Phone the propriety operating system on its smartphones.