Stephen Elop Gets About $33 Million For Leaving Nokia To Microsoft

Elop

With the Nokia/Microsoft deal officially closed last week on April 25, Stephen Elop has made his triumphant return to Microsoft. Elop is now the executive vice president (EVP) of the Microsoft Devices Group overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel products, and accessories. Stephen Elop was paid 24.2 million euros ($33.4 million) in cash and shares after he left Nokia, thanks to rising Nokia share prices, he got more than what he was entitled to get.

Elop himself is returning to the software giant after the deal closed on Friday, and based on Nokia’s share price in September he had been in line to get around 18.8 million euros for the early termination of his contract.

Elop, whose severance payment includes just over 4 million euros in cash, stood down as Nokia chief executive in September and led the phone unit from then until the closing of the deal with Microsoft. The unit’s operating loss widened to 306 million euros in the first quarter of this year. Microsoft paid 70 percent of the total severance payment, and Nokia the remaining 30 percent, Nokia said in its 2013 annual report.

 

Source: Reuters

About the author  ⁄ pradeep

Pradeep, a Computer Science & Engineering graduate.

  • http://yourig.livejournal.com/ ZloiYuri

    I can imagine how it was.
    - Here is 33mln$. But please, go away. JUST GO!!!

    • Hubert Hammack

      The Nokia that’s left won’t last 5 years. I predict it will either have gone bankrupt or some bigger company will gobble them up, perhaps even Microsoft.

      • http://yourig.livejournal.com/ ZloiYuri

        Do you care?

      • Vương Vi-Nhuyễn – 王微軟

        Don’t be so certain, Ericsson or some other would be interested in the N.S.N. though Nokia HERE Maps powers Microsoft’s Bing Maps, Yahoo! Maps, and A.O.L.’s MapQuest, Nokia owns the ”3rd party Map market”, and it can fight Scroogle Maps… ¿but for how long? maybe even longer than 5 years. ;-)

  • Bugbog

    You do realise this is a case of doing everything right, but things just not working out as well as they could.

    Besides, he’s ‘technically’ taking a demotion in coming back to Microsoft.

    • LexicoRed

      Technically he did not “do every thing right”;

      He announce new products too soon, there by killing legacy products sales before before new products could be delivered and unneeded burdening cash on hand.

      He did not make adequate investments in carrier relationships, in-store merchandising and training.

      Allow the product to be defined by software rather then showing a value position with hardware.

      Choose to use WP7 when no upgrade path available, there by inflicting harm to earlier platform .

      Since a secondary OS strategy was decided upon, implementation was executed to late.

      Nokia sold for pennies vs market cap at time of his arrival, he should have found buyer earlier.

      Just a few important “technical” mistakes he made.

      • Hubert Hammack

        What legacy products? Symbian was dying fast and 95% of the phones they were selling were dumb phones and feature phones, that they weren’t making any money on. Meego was a non-starter.

        Your second one is complete BS. He did improvements in carrier relationships. The reason WP has grown so little in the US is because the previous execs ignored the US for years, thus Nokia has very little brand awareness in the states.

        This criticism doesn’t even make any sense.

        WP7 wasn’t Elop’s decision, it was Microsoft’s. I might also add that Android owners experience the “no upgrade path” all the time. Yet I never hear anyone criticize Google for it. Elop had nothing to do with that.

        Android is BS. All of the Android OEMs are failing and losing money, with one exception, Samsung. They make all of the profits in Android. You would think with an OS so popular, OEMs would be capable of making money with it, but nope. Nokia didn’t have the resources to compete with Samsung, especially without Microsoft’s 1 billion dollar a year payments.

        The point was to try and turn Nokia around, not sell them immediately. Eventually, Nokia wanted to be rid of the devices division because it was too costly. Microsoft probably preferred Nokia to make a go of it on their own.

        However, Nokia put out the best phones they’ve ever made under Elop. He decreased their quarterly losses from over a billion dollars a quarter to 90 million his last quarter. He experience 6 straight quarters of sales increases, and had Nokia selling as many or more Lumia devices and every non-Samsung Android OEM were selling of Android phones.

        Stephen Elop was essentially given the controls of an airplane that had been in a nosedive for 40,000, right before the plane was going to hit the ground, and he was asked to save the plane. There was just no way to do that. Elop didn’t destroy Nokia, the previous executive staff destroyed Nokia. That’s why they were fired.

        • Bugbog

          Thanks for responding to LexicoRed. Sometimes when responses are this virulent I just can’t be bothered to summon the energy to retort. :)

        • LexicoRed

          He took over the was making money, he failed.

          Sales never increased under him, he failed.

          That “nosedive” was caused by him announcing new products year before delivery, in fact sales was growing at time of hiring, he failed.

          The company he was CEO is now worth less then when he was hired, he failed.

        • tom

          +1

      • Bugbog

        I guess you’re just seeing what you wish to see.

  • Mr Flop

    33 million pieces of Silver. Nokia Destroyed, return to base Mr Ballmer, your mission at Nokia has been accomplished

    • http://yourig.livejournal.com/ ZloiYuri

      Nokia were destroyed a long time before him. At least Lumias are great phones in quality, not sleaze like last Symbian devices (except n8). Previous chiefs just set on throne and didn’t even seen what happens around.

      • Vương Vi-Nhuyễn – 王微軟

        They couldn’t act as the different cliques kept fighting each other, kind of like Microsoft Mobile Oy’s many cliques that are still the same the prevented Nokia from innovating, the S40 Clique both Smarterphone to make Asha, and the S30 Clique wants to keep Mµæmo & MeeGo alive (¡FOREVER!) In their G.U.I. of which the S40 Clique (+ Smarterphone) agrees with, and keeping Symbian, the Linux/Android Clique made Nokia X, in the past this was just as worse, Nokia hasn’t evolved since 2003 because of it, different names, different platforms, but the same B.S. :-

    • Guest

      Grow up.

      • NGM123

        Pot, meet kettle.

    • Vương Vi-Nhuyễn – 王微軟

      I hate Elop (Mr. Flop… the REAL Mr. Flop) as much as the next guy, and I agree 99% with you, but I hope that he’ll make Microsoft Mobile Oy into a great company, there is much potential… for floppin’ *high five*

  • Gsquared

    Compared to some other severance packages I’ve read about that’s not a lot of money. There was just one guy in the news that got $58m in severance and:
    1. Wasn’t the CEO (EVP)
    2. Was on the job less than two years.
    Its a shame some people still don’t give Elop the credit he deserves. His accomplishments at Nokia probably saved that company from demise.

    • Vương Vi-Nhuyễn – 王微軟

      Maybe, he didn’t have any influence on the general market, Samsung/Anycall didn’t listen to him, but let’s not forget that the Nokia N9 was (and still is) considered Nokia’s #1 phone, …. EVAGH (EVERZ/EVER), and it could’ve easily outsold any Windows Phone, I’m a Windows Phone Fanboy, but the markets simply speak against us, either Windows P.C.’s will lead Windows Phone into success, or we’ll be stuck as ”the hipsters even ”hispsterishier;”; than iPhone users”…

  • EJECU

    F-Ing son of a bitch

  • TR

    Anyone thinking Elop destroyed Nokia, should read about OPK’s achievements during his time… For example: http://www.bloomberg.com/news/2010-07-20/nokia-said-to-be-looking-to-replace-chief-as-it-loses-ground-wsj-reports.html