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HS: Nokia gave false information on Elop’s contract

The terms of former Nokia CEO Stephen Elop’s contract, under which he will receive 18.8 million euros when the firm sells its mobile phone business, were considerably more generous than those granted to his predecessor, Olli-Pekka Kallasvuo. Nokia had stated that the contracts were similar, but Helsingin Sanomat now reports that there were big differences in how bonuses were calculated under the two contracts.

Stephen Elop ja Microsoftin toimitusjohtaja Steve Ballmer kuvattuna helmikuussa 2011. Image: Daniel Deme / EPA

Last week Nokia chair Risto Siilasmaa said that Stephen Elop’s contract was “substantially the same as previous Nokia chief executives’”. Helsingin Sanomat is now reporting that Nokia’s filings with the Securities and Exchange Commission show that to be false.

Elop’s predecessor Olli-Pekka Kallasvuo’s contract contained very different conditions relating to financial compensation if part of the company was sold. His bonus for completing a similar deal would have been 14.6 million euros smaller than Elop’s. The Canadian’s contract was negotiated and signed off by then-chair of the Nokia board, Jorma Ollila.

Siilasmaa described his previous statement as an “accident”.

Elop’s 18.8 million euro payout for selling Nokia’s devices and services unit to Microsoft has raised considerable disquiet in Finland. Prime Minister Jyrki Katainen and Finance Minister Jutta Urpilainen have led the criticism.