Nokia 2003 Annual Report Download - page 79

Subject to the requirements of Finnish law, the independent directors of the Board will confirm
the compensation and the employment conditions of Messrs. Jorma Ollila and Pekka Ala-Pietil¨ a
upon the recommendation of the Personnel Committee. The compensation and employment
conditions of the other members of the Group Executive Board are approved by the Personnel
Committee.
The compensation of our five most highly paid executive officers for 2003 is detailed in the
following table.
Other
Salary Bonus(1) Other Annual Compensation
Name and Principal Position in 2003 Year (EUR) (EUR) Compensation (EUR)
Jorma Ollila(2)
Chairman and Chief Executive Officer ........ 2003 1 400 000 2 253 192 * 150 000
2002 1 386 666 1 384 967 * 130 000
Pekka Ala-Pietil¨ a
President of Nokia Corporation and Head of
Nokia Ventures Organization .............. 2003 711 279 520 143 * —
2002 662 090 271 192 * —
Matti Alahuhta
President of Nokia Mobile Phones ........... 2003 626 953 532 138 * —
2002 591 719 297 265 * —
Olli-Pekka Kallasvuo(3)
Executive Vice President and Chief Financial
Officer ............................... 2003 575 083 505 724 * —
2002 520 788 285 072 * 42 142
Sari Baldauf(4)
President of Nokia Networks .............. 2003 514 943 387 627 * 31 535
2002 476 705 60 875 * —
(1) Bonus amounts are based on the performance of the Group and the individual for the fiscal year and
were paid under Nokia’s Short Term Incentive Plan, which is described in the ‘‘Report of the Personnel
Committee.’’
(2) ‘‘Other Compensation’’ in 2003 for Mr. Jorma Ollila includes EUR 150 000 for his services as Chairman of
the Board, of which EUR 90 000 was paid in cash and the balance paid in 4 032 Nokia shares. ‘‘Other
Compensation’’ in 2002 for Mr. Jorma Ollila includes EUR 130 000 for his services as Chairman of the
Board, of which EUR 78 000 was paid in cash and the balance paid in 2 650 shares.
(3) ‘‘Other Compensation’’ in 2002 for Mr. Olli-Pekka Kallasvuo represents a payment for the 20 year
anniversary of his employment with Nokia, consistent with a policy for all Finnish-based employees.
(4) ‘‘Other Compensation’’ in 2003 for Ms. Sari Baldauf represents a payment for the 20 year anniversary of
her employment with Nokia, consistent with a policy for all Finnish-based employees.
*Each executive listed received benefits and perquisites in 2003 not exceeding the lesser of EUR 50 000 or
10% of the executive’s total compensation.
Our executives forming the Group Executive Board in 2003 participate in the Finnish TEL pension
system, which provides for a retirement benefit based on years of service and earnings according
to the prescribed statutory system. Under the Finnish TEL pension system, base pay, incentives
and other taxable fringe benefits are included in the definition of earnings, although gains realized
from stock options are not. The Finnish TEL pension scheme provides for early retirement benefits
at age 60 and full retirement benefits at age 65. The current TEL provisions cap the total pension
benefit at 60% of the pensionable earnings amount.
For Mr. Jorma Ollila, Mr. Pekka Ala-Pietil¨ a, Dr. Matti Alahuhta, Mr. Olli-Pekka Kallasvuo and
Ms. Sari Baldauf, Nokia offers a full retirement benefit at age 60. The full retirement benefit is
based on the executive’s pensionable earnings at age 60, assuming that the executive continues
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