Nokia 2005 Annual Report Download - page 113

(1) The performance period for the 2004 plan is 2004-2007, with one interim measurement
period for fiscal years 2004-2005.
Similarily, the performance period for the 2005 Plan is 2005-2008, with one interim
measurement period for fiscal years 2005-2006.
(2) For the performance share plans 2004 and 2005, the number of performance shares at
threshold represents the number of performance shares granted. This number shall vest as
shares, should the pre-determined threshold performance levels of the company be met. The
maximum number of performance shares shall vest as shares, should the predetermined
maximum performance levels be met. The maximum number of performance shares equals
four times the number originally granted.
(3) Value is based on the closing market price of the Nokia share on the Helsinki Stock Exchange
as of December 30, 2005 of EUR 15.45. The value is presented for the target number of shares,
which is two times the number at threshold. The target number is used for expensing the
instruments in the company’s accounting.
(4) Restriction period ends for the restricted share plan 2003 on October 1, 2006 (Vesting Date).
Vesting Date for the 2004 plan is October 1, 2007, and for the 2005 plan October 1, 2008.
(5) Value is based on the closing market price of the Nokia share on the Helsinki Stock Exchange
as of December 30, 2005 of EUR 15.45.
(6) Pekka Ala-Pietil¨
a resigned as member of the Group Executive Board as of October 1, 2005, and
ceased employment with us on January 31, 2006.
As of December 31, 2005 he held 35 000 restricted shares from each of the 2004 and 2005
Restricted Share Plans, 20 000 performance shares at threshold from the 2004 Performance
Share Plan and 15 000 performance shares at threshold from the 2005 Performance Share
Plan. He forfeited all his performance shares and restricted shares in accordance with the
relevant plan rules.
(7) Yrj¨
o Neuvo resigned as member of the Group Executive Board effective October 1, 2005, and
retired from Nokia as of December 31, 2005.
As of December 31, 2005 he held 5 000 performance shares at threshold from 2004
Performance Share Plan. He was entitled to keep all his performance shares and restricted
shares in accordance with the relevant plan rules.
Stock Ownership Guidelines for Executive Management
One of the goals of our long-term equity-based incentive program is to focus executives on
building value for shareholders. In addition to granting them stock options, performance shares
and restricted shares, we also encourage stock ownership by our top executives. In January 2001,
we introduced a stock ownership commitment guidelines with minimum recommendations tied to
annual base salaries. For the members of the Group Executive Board, the recommended minimum
investment in our shares corresponds to two times the member’s annual base salary. For
Mr. Kallasvuo, who has already met this requirement as of the end of 2005, the Board of Directors
has set a new recommended minimum ownership guideline of three times his annual base salary.
To meet this requirement, all members are expected to retain after-tax equity gains in shares until
the same minimum investment level is met.
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