Nokia to pay $25 million to Stephen Elop as termination payment
Former Nokia CEO Stephen Elop will receive $25 million in termination payments if the company’s shareholders agree to sell its mobile phone business to Microsoft.
The software giant is buying Nokia phone business for $7.2 billion.
Earlier, Google’s $12.5 billion acquisition of Motorola Mobility has assisted its India-born CEO Sanjay Jha to receive a $66 million Golden Parachute compensation package.
Nokia said on Thursday that the money would be due to Elop following his agreement to immediately stand down alongside the announcement of the deal, and that Microsoft would pay approximately 70 percent of the total.
Elop is set to return to Microsoft, his former employer, after the closure of its 5.44 billion euros acquisition of Nokia’s handset business. He is also one of the strong contenders to become the next CEO of Microsoft when Steve Ballmer steps down within the next 12 months.
Nokia said Elop would be entitled to receive 18 months of his base salary, plus a short-term management cash incentive, equivalent to a total of around 4.2 million euros.
He would also be in line for around 14.6 million euros from an accelerated vesting of his outstanding equity awards.
Nokia’s shareholders will meet to decide on the proposed deal with Microsoft on November 19.
As per the deal between Motorola and Google, Jha stands to gain $13.20 million in cash and $52.5 million for his stock options and shares.
The cash component of the Golden Parachute package includes $10.8 million in severance pay and a $2.4 million bonus. The cash portion is equal to three times Jha’s base salary and bonus.