Nokia’s Nose Is Growing: Board Discloses False Info About Elop’s Contract
Finland’s largest daily newspaper, Helsingin Sanomat, has effectively demonstrated why well-executed investigative journalism is so important. The publication uncovered Tuesday that Nokia (NYSE:NOK), the technology corporation with headquarters in Espoo, Finland, has been lying about its CEO’s bonus package, which it asserted Friday was “essentially the same” as the one the previous CEO had received.
Forbes highlighted the report Tuesday and pointed out evidence that Elop’s 2010 contract has undergone several changes that make it unique to his predecessor’s. The changes are especially relevant because many of the clauses that were inserted into Elop’s contract have now come to fruition.
Among a handful of things, what makes Elop’s contract different than his predecessor’s, Olli-Pekka Kallasvuo, is that he is now entitled to an immediate share price performance bonus in case of a “change in control” situation. What falls under the distinction of a “change in control” situation? The selling of Nokia’s handset division to Microsoft (NASDAQ:MSFT), of course.