Forgot your password?
typodupeerror
Businesses Microsoft The Almighty Buck

Nokia's Elop Set To Receive $25 Million Bonus After Acquisition 196

Posted by Unknown Lamer
from the surprise-surprise dept.
jones_supa writes with an update on the Microsoft purchase of Nokia. From the article: "Stephen Elop, the former Nokia Oyj chief executive officer who is rejoining Microsoft, is set to get more than $25 million if the Finnish company completes the sale of its handset business to the software maker. Microsoft will pay 70 percent of the projected total amount of about 18.8 million euros ($25.5 million), and Nokia the remainder, according to a proxy filing by Nokia today. The value of Elop's reward is estimated using Nokia's Sept. 6 closing share price and may still change. Nokia shares have dropped by more than a third since Elop was hired on Sept. 10, 2010, even with the stock's gain since the sale to Microsoft was announced. Nokia shareholders are set to vote on the transaction Nov. 19. Elop will move back to Microsoft as part of the $7.2 billion takeover. He is also a candidate to succeed Microsoft CEO Steve Ballmer."
This discussion has been archived. No new comments can be posted.

Nokia's Elop Set To Receive $25 Million Bonus After Acquisition

Comments Filter:
  • Ahhh ... (Score:5, Insightful)

    by Anonymous Coward on Thursday September 19, 2013 @03:52PM (#44896433)

    Good to see the old boys network is thriving.

    They don't choose candidates with successful track records, just the ones who they play golf with.

    From the sounds of it, Elop completely fucked Nokia, is selling the farm to Microsoft, and will make out like a bandit and get the chance to be considered to run Microsoft.

    All in all, I'd say the shareholders of Nokia are getting the shaft here. This is just corporate pillaging.

    • by h4rr4r (612664)

      What makes you think that was not a success?

      • Re: Ahhh ... (Score:5, Insightful)

        by Anonymous Coward on Thursday September 19, 2013 @03:55PM (#44896465)

        MS got Nokia cheap, Elop gets millions. I'd say it was a success for both of them. Nokia? They got screwed from the inside out.

        • Re: Ahhh ... (Score:5, Insightful)

          by jd2112 (1535857) on Thursday September 19, 2013 @06:05PM (#44897545)
          And don't forget that the remains of Nokia still hold all of their patents. Since they won't be manufacturing phones anymore the only reason I can think od for them to NOT have sold them to Microsoft is so they can sue Apple and all the Android manufacturers and Microsoft can pretend that they have nothing to do with it.
          • According to Forbes 2.2B of the sale price was for the patents. So it looks like MS can keep making money off the Android licensing business they have going.
            http://www.forbes.com/sites/parmyolson/2013/09/03/microsoft-to-buy-nokias-mobile-business-for-5b-license-patents-for-2-2b/

      • Re:Ahhh ... (Score:5, Informative)

        by poetmatt (793785) on Thursday September 19, 2013 @04:10PM (#44896623) Journal

        You are exactly correct: embrace extend extinguish, same as always. This is no different. The extend was Elop -> Nokia, and back to MS after the damage is done.

    • by ron_ivi (607351) <sdotno AT cheapcomplexdevices DOT com> on Thursday September 19, 2013 @04:19PM (#44896717)
      Sounds almost exactly like how Belluzzo was rewarded for killing HPUX, PA-RISC, IRIX, and 64-bitMIPS in favor of WinNT-on-Itanium. http://en.wikipedia.org/wiki/Richard_Belluzzo [wikipedia.org]
      • Re: (Score:3, Funny)

        by Anonymous Coward

        "Now I have become Richard, the destroyer of micro architectures."

    • Re:Ahhh ... (Score:5, Insightful)

      by Quila (201335) on Thursday September 19, 2013 @04:43PM (#44896935)

      Notice MS is giving most of the money. It's the payoff for selling Nokia for cheap.

    • The shareholders hired Elop. The shareholders kept Elop on. It will be the shareholders who approve the buyout. And it will be the shareholders who vote to reward Elop.

      So yes the sharehodlers are getting the shaft, but they're asking for it. I don't understand the motivation behind bondage and dominance, but who am I to judge the shareholders' sexual proclivities?

      • Re:Ahhh ... (Score:5, Insightful)

        by gl4ss (559668) on Thursday September 19, 2013 @05:49PM (#44897409) Homepage Journal

        Smaller shareholders were never asked and they were told that Elop was trying to run the company well and not deliberately tank it - but he tanked it deliberately and is now being paid for doing so. he should be sued, pretty much everyone in the world thinks he deliberately tanked it.

        See, if the board had issued a stockmarket info piece saying that they hired Elop to destroy the firm then it would be all legit - it being legit being directly tied to if they announced their intentions to stockholders. but they didn't. if the board fucks small investors deliberately that's illegal and they of course had inside information that he was going to fuck up the company in various ways - best example of deliberately fucking up the company being to publicly announce a product line as dead - a product line that was selling more units than ever before in it's life, that same year was also the best ever for symbian app revenues for developers - in panic he announced it dead to kill it. Tying Nokia to a shitty "smart"phone platform was just icing on that shitcake.

        That he is getting a bonus for finalizing Nokias death is not that much of a surprise though, since his career possibilities outside of MS are pretty much burnt - because he is a shit CEO, like, he is really really bad at that job while being quite good in taking bribes, only fscking idiot would put a guy like that in charge. I can't see Gates putting him in charge of MS because all Elop would do would be to sell it to Oracle in 4 years(He would find a way, first by announcing that Windows is dead because ,if you count smartphones and tablets as computers, then it's marketshare has tanked and will be 0% if current trends continue in 5 years(insert xckcd comic about trends) and then he would announce they're going to go all cloud with Oracles cloud tools "before it's too late" and then it would just naturally flow from there..).

    • by gagol (583737)
      I cant believe this is legal. Looks like insider trading to me, but I am not a lawyer. If a lawyer reads this, can you enlighten us about legal recourse by Nokia shareholders?
    • by ackthpt (218170)

      Good to see the old boys network is thriving.

      They don't choose candidates with successful track records, just the ones who they play golf with.

      From the sounds of it, Elop completely fucked Nokia, is selling the farm to Microsoft, and will make out like a bandit and get the chance to be considered to run Microsoft.

      All in all, I'd say the shareholders of Nokia are getting the shaft here. This is just corporate pillaging.

      Aye, squire Anonymous, it be makin' pirates appear nearly civil, by ways of comparison. I be getting downhearted. ox)P-(

      Bonny job Master Elop, yer company is headed for Davy Jones locker, here be yer booty!

    • by sconeu (64226)

      "From the sounds of it, Elop completely fucked Nokia, is selling the farm to Microsoft, and will make out like a bandit and get the chance to be considered to run Microsoft."

      In other words, MISSION ACCOMPLISHED!!!!

      What do you think Elop took the job for? First thing he did was kill all other development at Nokia except Windows Phone. There's been speculation since his first day at Nokia that he was a MS plant.

  • by Chris Mattern (191822) on Thursday September 19, 2013 @03:55PM (#44896457)

    ...the phrase "thirty pieces of silver" keeps coming to mind...

  • Conscience? (Score:5, Insightful)

    by CMYKjunkie (1594319) on Thursday September 19, 2013 @03:56PM (#44896475)
    I wonder how Elop can sleep at night for getting $25mil to tank a company.

    But I suppose it isn't too hard on a pillow made of 250,000 Benjamins
  • by CajunArson (465943) on Thursday September 19, 2013 @03:58PM (#44896485) Journal

    I could have run their business into the ground for half that much!

    • by Anonymous Coward on Thursday September 19, 2013 @04:04PM (#44896571)

      You might not have dug quite as deep into the ground though. It takes special skills to fail so extensively.

    • Re: (Score:3, Interesting)

      by interkin3tic (1469267)
      Will someone explain to me like I'm five how it is that most large corporations seem to have buckets of cash lying around to waste on executive pay? It seems to me that executives rarely do anything similar to pitching a perfect game in major league baseball, yet they're given money like they are. And how is it that companies that do this aren't out competed by companies who give reasonable pay?

      I'm a flamingly liberal academic. I have no understanding of business. I don't worship at the altar of "free
      • by h4rr4r (612664)

        My similarly pinko commie understanding is that compensation is voted on by the board and these folks are generally board members of other companies where their board members are executives. So they all give each other huge salaries and raises for fear if they vote against they might no get huge salaries and lose out on crazy raises.

        • That doesn't explain why companies that do not play this game aren't driving such companies to extinction.
      • by ColdWetDog (752185) on Thursday September 19, 2013 @04:50PM (#44896995) Homepage

        You need to work on your pyschopathy. Everyone has some psychopathic tendencies, but if you want to understand a CEO you need to embrace and extend (but certainly not extinguish) those traits.

        Stomp on little animals. Steal money from children. Get elected to some office and perform some official malfeasance. Find a trophy wife or two (or husband, lets be 21st century about this). Read up on biographies of famous people.

        You seem like an intelligent, hard working person. It's not beyond your grasp.

      • by stanjo74 (922718)
        very simple. The bigger and older the company, the more proxy voter shareholders it has (traded on the secondary exchanges to millions to people who own only a handful of shares each). These shareholders have no clue what is going on in the company they own. They let the board and executives run the show unabated.

        The real game is played at the board level and executives. The company itself is just a stage - nobody cares about the company in the long run - one can always incorporate another. The board and t

      • What I find funny is that most people on the street are so negative when someone who has pitched a perfect game in major league baseball gets paid a lot ... the performance of these sportsmen can be measured extremely accurately, the level of income they generate for their clubs can be estimated pretty well ... and yet they make too much money. Whereas management who's performance can't be measured and the level of income they generate for their companies is completely fucking unknown deserve the big bucks

  • A comparison (Score:5, Insightful)

    by Stormwatch (703920) <rodrigogirao&hotmail,com> on Thursday September 19, 2013 @03:59PM (#44896499) Homepage

    That'd be like giving captain Schettino a bonus when the Costa Concordia is salvaged, even though he's the dolt who sank it.

    • Re:A comparison (Score:5, Interesting)

      by akozakie (633875) on Thursday September 19, 2013 @05:16PM (#44897179)

      No. That's like a salvage company taking over the sunken ship for pennies and rehiring the captain they sent there.

      Corporate assasination is relatively easy. Corporate poisoning is difficult. He had to make Nokia cheap as fast as possible but without completely killing it or losing the technological potential or IP assets. Plus, narrowly avoid crossing the line that would cause either legal problems or massive shareholder outrage. That's a hard job. The bonus is well earned.

  • by jkrise (535370) on Thursday September 19, 2013 @04:00PM (#44896515) Journal

    when, not if; Elop rejoins Microsoft; Google and the Android phone developers could reward him another $1 bn for achieving the same spectacular success he did at Finland.

  • WTF? (Score:5, Insightful)

    by Zero__Kelvin (151819) on Thursday September 19, 2013 @04:03PM (#44896557) Homepage
    How is this even legal? It is almost as if nobody sees it as a bribe because they don't think a bribe can happen in the open. The SEC needs to put a stop to this acquisition. It smacks of fraud on a massive level.
  • by nojayuk (567177) on Thursday September 19, 2013 @04:06PM (#44896595)

    E-lop. Phone. Hoooome.

  • by PPH (736903)
    Assuming 98,000 Nokia employees, that's about $255 per scalp.
    • Or maybe 575?

      Latest report says they have 87k employees. I don’t know how many are in the D&S division that Microsoft is buying but they do produce about ½ the revenues so I am going to guess that they have ½ the employees.

  • by DontBlameCanada (1325547) on Thursday September 19, 2013 @04:10PM (#44896629)
    I'll take, "Professions You Get Paid No Matter How Much You Fuck Up" for $25 million Alex.

    Excerpt from the new reality gameshow: Shareholder Jeopardy
  • by dirk (87083) <dirk@one.net> on Thursday September 19, 2013 @04:11PM (#44896639) Homepage

    So let me get this right. He took over Nokia 3 years ago. In that time their stock price has dropped by more than a third. In any way you measure it, he has failed as the head of the company. So they decide to sell to Microsoft, because he has been unable to do his job well and do anything to keep them from sinking further. And he will be REWARDED with $25 million?!?!?! So for helping his company continue to fail, he will get a $25 million dollar bonus over what is I'm sure a fairly ridiculous compensation package.

    And to top it off, he is on the short list of people to become the new Microsoft CEO? They really are considering basically giving him a huge promotion for being unable to turn Nokia around and letting them get so bad off that selling to MS was their only option? CEOs are absolutely rewarded for failure, because his performance can't be seen as anything other than a failure.

    • by paavo512 (2866903)

      CEOs are absolutely rewarded for success, because his performance can't be seen as anything other than a success by Microsoft.

      There, fixed that for you!

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      In any way you measure it, he has failed as the head of the company.

      Some people will say that the company was in decline when he joined; he was successful in making the decline smaller. E.g. they didn't actually go bankrupt.

      (I think those people are deluded, but that's just my opinion).

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      No, Microsoft is rewarding him. His job was to make Nokia cheap for Microsoft to purchase. He did a fantastic job. So they are rewarding him.

      Microsoft has seen that Elop is a fantastic candidate - he is willing to ruin other companies for Microsoft's benefit. Can Microsoft ask for a more loyal candidate for a CEO?

    • If anyone wants proof of what is said above: Ten people that made millions for being terrible at their job [listverse.com]
    • by thoth (7907)

      Sounds like Wall Street Rules, where success is rewarded and so is failure, just a little less so.

    • I am going to disagree with you. Sometimes you want to throw cash at the CEO to go away. If you don’t they will hold on to the bitter end and they will make sure it is bitter. You are making the assumption that he ran the company into the ground. Nokia had issues before they hired Elop and I don’t think he made the situation any worse. (Nor did he make the situation better so there is that.)

      I will point out that the 25m comes from the change of control clause – he would have been paid that

    • CEOs often do get rewarded for their failures, but this was a success, just not for the company he was CEO of. But we pretty much knew this or something like it was coming.
    • by tompaulco (629533)
      Well, it sounds to me like he did it on purpose in order to make a smaller purchase price for Microsoft. I think the shareholders should sue him and Microsoft for actual damages of $8 billion and punitive damages of another $80 billion.
  • Well, of course. (Score:4, Insightful)

    by roc97007 (608802) on Thursday September 19, 2013 @04:11PM (#44896641) Journal

    Money paid for value received. Microsoft got what they wanted, an artificially undervalued cell division, and paid accordingly.

  • by Anonymous Coward on Thursday September 19, 2013 @04:20PM (#44896721)

    I knew this was going to happen. EVERYONE knew this was going to happen the moment we heard a Microsoft guy was going to be put in charge. EVERY step this guy has taken has led to this.

    I always remember Nokia as being a point of national pride for the finns! They loved to brag about it, being in the forefront of a hot and growing tech industry. Why are they letting an American company walk in and scoop it all up in what is essentially a giant fraudulent business exchange? So many high-tech jobs lost. Where is the outrage?

    I know Finland isn't the US, but why haven't executives been hauled in front of whatever the equivalent of congress is there to explain why a key industry has been sabotaged and sold overseas?

    • Re: (Score:2, Informative)

      by Anonymous Coward

      Nokia was a finnish company, owned by finns. Later it was majority owned by US investment co, US mutuals funds et.c. They control the board, appoint a US CEO.
      The nationality of ownership changed. Nokia listed on NYSE since 1994. The owners thought that Elop was the right man to lead the company.

  • Good news for Jolla (Score:5, Interesting)

    by Anonymous Coward on Thursday September 19, 2013 @04:35PM (#44896879)

    Given that Jolla is having their second round of pre-orders today (in Finland only), I expect Finns, angry at the looting of one of Finland's biggest and most well-known companies by Microsoft, are more likely than ever to throw money at a Finnish phone maker founded by ex-Nokia guys who quit and/or were fired under Elop...

  • We have the Peter Pinnacle [slashdot.org] when Ballmer announced he was leaving. I guess this makes this situation the old, tried and tested, Peter Principle. I've already dumped my Microsoft stock a long time ago but when there's speculation that this retard will be Ballmer's replacement, I can't help but think that shareholders and customers will be wanting Ballmer back! That in and of itself is abhorrent but if you're going to get burned in a fire or boiled in oil I guess it pretty much doesn't matter which path you

  • by Anonymous Coward on Thursday September 19, 2013 @05:15PM (#44897175)

    "A high ranking VP of a corporate giant becomes the new CEO of a company in a different business, in a different country. He doesn’t sell his home in Seattle, nor does his family move with him, even though he’s ostensibly going to be there permanently. Over the next three years, he makes counterintuitive decisions that abandon his new company’s core strengths, and their value plummets to a tiny fraction of what it was.

    You get the idea. Essentially, the theory here — and this has been floating around for a while — is that Stephen Elop became the CEO of Nokia to soften the company up for the Microsoft takeover left Nokia without its hardware business."

    It is so blindingly obvious. If anyone doesn't see this, they are beyond hope. One might quote the Hanlon's Razor: "Never attribute to malice....", but it simply does not account for the amount of maneuvering and the number of counterintuitive senseless decisions that made this acquisition possible. What is more applicable is: "If it looks like a duck, walks like a duck and quacks like a duck,.....".

    • Hanlon's Razor: Never attribute to malice that which is adequately explained by stupidity.

      Stupidity can not explain the decisions made here. Only malice can.

  • Microsoft uses it's influence to put it's executive in charge of Nokia. Executive does everything possible to destroy value in Nokia. Microsoft buys Nokia for a fraction of what it was worth before trojan executive. I don't see how the whole thing can be anything other than a carefully planned fraud perpetrated on Nokia shareholders.
  • Executives do not play by the same rules as the rest of us. The can obviously act in the worst interests of their company and shareholders, and are never taken to task for it.

  • Just remember kids, if you REALLY work at it, one day you too could suck as much as that guy and get paid $25 million for it! It's the American Dream!
  • ....for "talk like a pirate" day.

    Elop shoulders his booty as he stepped over the rail onto the winning ship.

  • So, it was a good run where Elop managed to change the "embrace, extend, extinguish" mantra into "embrace, f*ck it up, s*ck it up".

    Good job. Well done. Nokia shareholders are probably the most happy about it.
  • Ellop (with double l) means 'to steal' in hungarian.

A CONS is an object which cares. -- Bernie Greenberg.

Working...