If Nokia-Microsoft deal goes through, Nokia’s former CEO Stephen Elop will get about $25 million from Microsoft and Nokia. This figure was revealed in the proxy materials for Nokia’s general meeting to be held to approve their devices and services business to Microsoft.
Right from the day this information was revealed, Finnish press seems to be not happy with Nokia board’s decision. They feel that Stephen Elop does not deserve this bonus number because he led the company to sells its devices division to Microsoft. Adding to that, on Tuesday it was revealed that Risto Siilasmaa, Nokia’s chairman of the board, had misrepresented facts last week when he claimed that Elop’s bonus arrangements were similar to those of previous chief executives.
Now according to the latest report from Finland, Nokia is in discussion with Stephen Elop to reduce his bonus.
According to Helsingin Sanomat, Nokia is now srcambling to contain the public relations damage the ongoing drama is causing. Asking Elop to accept a smaller bonus might silence some of the critics — on Tuesday, the head of Finland’s Equity Investor Association called Siilasmaa’s mistaken claims about Elop’s bonus package “unforgivable.”
Tuesday night’s big drama in Finnish media circles is being driven by the Helsingin Sanomat scoop that Elop is resisting Nokia’s pleas to reduce his bonus because he is getting divorced. Apparently Mr. Elop believes he cannot make his wife accept a reduction in the $25 million severance package. It is safe to say Finland has never witnessed melodrama like this when it comes to the best known company in the country
I think Microsoft can step into this issue and accept to pay Nokia’s payment to Elop.