Nokia Chief Executive Stephen Elop took a 45 percent cut in his pay
package last year, according to a U.S. regulatory filing, as the company
continued losing market share in smartphones to Samsung and Apple.
hired in 2010 from Microsoft Corp to turn around the Finnish mobile
phone maker, earned 4.33 million euros in 2012, down from 7.94 million
euros in 2011.
While his base salary rose by 59,500 euros to 1.08
million euros, his stock and option awards fell slightly and he earned
no bonus, according to the Thursday filing with the U.S. Securities and
His 2011 compensation included about 2 million euros to make up for income lost as a result of his move from Microsoft.
shares fell 22 percent last year. The company reported an underlying
profit in the fourth quarter thanks to cost cuts, but it axed its annual
dividend payment for the first time to shore up its cash position.
SEC filing included a customary list of risk factors, many of them
focused on whether Elop's controversial decision in 2011 to adopt
Microsoft's untested Windows Phone software would pay off.
said on Thursday that it will receive more payments from Microsoft than
it pays to the software giant this year, but will be a net payer in
royalties starting in 2014.
It said its payments to Microsoft will
exceed what it receives from the U.S. company by about 500 million
euros over the remainder of their pact. The companies have not disclosed
how long their deal will last.
Morgan Stanley said the market had
feared a higher net payment from Nokia to Microsoft in coming years.
But it said the filing would not affect its forecast for sales of Lumia,
Nokia's Windows Phone handsets. It expects Nokia to ship 40 million
Windows Phone handsets in 2013.
© Thomson Reuters 2013