Nokia pays a big severance payment to Finnish public outrage

Nokia's former chief executive, Stephen Elop, paid 18.8 million euros in severance payments, resulting in a lot of criticism. Among them, the Finnish Prime Minister and Finance minister joined the ranks of critics. Last weekend, Finnish Prime Minister Katainen Jyrki Katainen, in an interview with Finnish television (Finnish TV), said it was unfair to issue so many bonuses in the face of difficulties. He said the money was annoying and said: "Obviously, in all the big companies around the world, this kind of reward is unusual, and it's not understandable from common sense." ”

Jutta Urpilainen, the Finnish finance minister, said in a blog that the bonuses undermined trust. "In addition to creating a poisonous atmosphere, it is bad for social harmony," she said. ”

Microsoft has reached a deal with Nokia to buy its mobile phone and services business in 5.44 billion euros. In the deal, he will get 18.8 million euros of severance payments as he returns to Microsoft and the hiring agreement changes.

In Finnish politics and workers ' circles, the matter has aroused public outrage.

Nokia will face a rigorous scrutiny of the money it paid to Elop, counting the 1 million euros left by the 1 billion euros in Nokia's market capitalisation during his leadership.

Last November, Nokia said it had modified the Elop deal to meet Microsoft's trading requirements. In Sunday, Nokia said it had changed the deal in order to stop him from leaving the company and to let him sign the non-competition agreement and not let him go to work at Microsoft. Microsoft will bear 70% of severance payments and the rest to Nokia.

Nokia explained that amending the control clause would trigger severance payments, which is common in the world.

In the evening of Friday, Risto Siilasmaa, Nokia's chairman, said in a statement: "After the handset business was finished, the remuneration paid to Elop was carried out in full compliance with the terms and conditions of his CEO contract, and in 2010 the board approved the contract." Smush ”

Jyrki Katainen, Finland's prime minister, Katainen that the severance payment was not fair, and not long ago, when Finland introduced new rules, workers would receive an additional € 200 a month in the first year, and a 0.4% increase in wages for the second year.