The rumors were true. 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 sharpen the transformation of our 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 one of the most iconic brands in the world, and to lead the mobile communications industry into the future. Nokia enjoys a unique position as well as a great opportunity 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 very mission: Connecting People, which will acquire new dimensions as we bring the Internet and communications closer together.”
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.
“We would like to thank Olli-Pekka for his thirty years at Nokia, during which time he has been involved in developing the company and its operations. His dedication and contribution through the years have been essential to the development of Nokia’s success in its future pursuits,” says Jorma Ollila.
As stated in accordance with the terms of his service contract, Kallasvuo is entitled to a severance payment valued at 18 months of his base salary and a short-term incentive which would have been payable for 2010, and he will also continue as compensation for the fair market value of the 100,000 restricted Nokia shares granted to him in 2007, which are set to vest on October 1, 2010.