Nokia appoints Stephen Elop as new President and CEO

Published: September 10, 2010

Stephen Elop

Nokia's N8 won't be the only new thing around the company when it's released later this month, as Nokia announced today that they have appointed a new President and CEO.  We'd heard back in July that Nokia was looking to replace Olli-Pekka Kallasvuo as President and CEO of the company, and today that rumor became reality as Nokia has chosen Stephen Elop as their new President/CEO.  Elop is currently the President of Microsoft's business division and previously served as a COO at Juniper Networks, President at Adobe Systems, and CEO at Macromedia.  Kallasuvo, who has been with Nokia for the past 30 years, will leave Nokia on September 20th and will receive a severance package consisting of 18 months gross base salary and target incentive totaling around 4.6 million euro and compensation for his 100,000 shares of Nokia.  Check out the full press release below.

Although Nokia and its Symbian-based handsets are still king when it comes to worldwide marketshare, both of them have slowly been losing customers to BlackBerry, Android, and iPhone, especially in the U.S.  Nokia's new high-end N8 will look to reverse that trend when it comes out later this month, and the new N9 running MeeGo that we've seen leaked in the past should definitely help raise interest in the company.  Do you readers think that Elop will help improve Nokia and gain some marketshare back for the company?

Our own Aaron Baker will be live at Nokia World 2010 next week on September 14th and 15th, so be sure to check back for all of his coverage of the big event!

Nokia appoints Stephen Elop to President and CEO as of September 21, 2010

Nokia Corporation
Stock Exchange Release
September 10, 2010 at 08:30 (CET+1)

Espoo, Finland -Nokia's Board of Directors has appointed Stephen Elop President and Chief Executive Officer of Nokia as of September 21. Elop currently heads Microsoft's Business Division. Before joining Microsoft, Elop held senior executive positions in a number of US-based public companies, including Juniper Networks, Adobe Systems Inc. and Macromedia Inc. He holds a degree in computer engineering and management from McMaster University in Hamilton, Canada, which is his home country.

"The time is right to accelerate the company's renewal; to bring in new executive leadership with different skills and strengths in order to drive company success. The Nokia Board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia. His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company. We believe that Stephen will be able to drive both innovation and efficient execution of the company strategy in order to deliver increased value to our shareholders," said Jorma Ollila, Chairman of the Nokia Board of Directors.

Elop commented on his new Nokia position: "I am extremely excited to become part of a team dedicated to strengthening Nokia's position as the undisputed leader of the mobile communications industry, with a relentless focus on meeting the needs and expectations of customers. Nokia has a unique global position as well as a great brand upon which we can build. The company has deeply talented and dedicated people, and I am confident that together we can continue to deliver innovative products that meet the needs of consumers. The Nokia slogan clearly states our key mission: Connecting People, which will acquire new dimensions as we build our portfolio of products, solutions and services."

Olli-Pekka Kallasvuo will leave his current position as President and CEO of Nokia on September 20, 2010 and his position on the Nokia Board of Directors with immediate effect. He will continue to chair the Board of Nokia Siemens Networks in a non-executive capacity.

"The whole Board of Directors joins me in thanking Olli-Pekka for his thirty years at Nokia, during which he has been deeply involved in developing the company and its operations. His dedication and contribution throughout the years has been exceptional. The Board wishes him every success in his future pursuits," says Jorma Ollila.

In accordance with the terms and conditions of his service contract, Kallasvuo is entitled to a severance payment consisting of 18 months gross base salary and target incentive which totals approximately 4.6 million euro. He will also receive as compensation the fair market value of the 100 000 restricted Nokia shares granted to him in 2007, which vest on October 1, 2010.

As of September 10, 2010, the Nokia Board will consist of the following members: Jorma Ollila (Chairman), Dame Marjorie Scardino (Vice Chairman), Lalita D. Gupte, Bengt Holmström, Dr. Henning Kagermann, Per Karlsson, Isabel Marey-Semper, Risto Siilasmaa, Keijo Suila.

A press conference will be held today at Nokia's head office in Espoo, Finland, at 13:00 (CET+1). The press conference will be webcast live via: www.nokia.com/press or http://www.nokia.com/press/media_resources/audio/nokia-webcasts.

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.3 billion people connect to one another with a Nokia device - from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi (www.ovi.com), including music, maps, apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

This Week's "People's Choice Rankings" Best Smartphone

15 Votes
×
14 Votes
×
9 Votes
×
8 Votes
×
6 Votes
×