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. People are criticizing that Stephen Elop is getting more than what he deserves. Nokia justified its payment by saying it was what he was entitled to under his service contract. According to the contract he signed earlier when he joined, in the case of a change of control, he would be entitled to 18 months base salary and bonuses as well as accelerated vesting of his stock options.
The interesting thing to note is that 70 per cent of the payment to Elop would be paid by Microsoft with the remainder paid by Nokia. Stephen Elop is expected to become the head of expanded devices division at Microsoft if he loses out in the Microsoft CEO selection process.