Nokia 2005 Annual Report Download - page 191

Notes to the Consolidated Financial Statements (Continued)
34. Related party transactions
Nokia Pension Foundation is a separate legal entity that manages and holds in trust the assets for
the Group’s Finnish employee benefit plans; these assets include 0.009% of Nokia shares.
At December 31, 2005, the Group had borrowings amounting to EUR 62 million (EUR 62 million in
2004) from Nokia Unterst ¨ utzungskasse GmbH, the Group’s German pension fund, which is a
separate legal entity.
The Group recorded net rental expense of EUR 2 million in 2005 (EUR 2 million in 2004 and
EUR 2 million in 2003) pertaining to a sale-leaseback transaction with the Nokia Pension
Foundation involving certain buildings and a lease of the underlying land.
There were no loans granted to the members of the Group Executive Board and Board of Directors
at December 31, 2005 or 2004.
2005 2004 2003
EURm EURm EURm
Transactions with associated companies
Share of results of associated companies ............................. 10 (26) (18)
Dividend income ................................................ 123
Share of shareholders’ equity of associated companies .................. 33 37 18
Liabilities to associated companies .................................. 14 33
Management remuneration
CEO and Chairman, and President
The following table depicts the base salary and cash incentive payments information awarded to
the Chief Executive Officer and Chairman, and the President of Nokia Corporation for fiscal years
2003–2005 as well as the share-based compensation expense relating to equity-based awards,
expensed by the Group.
2005 2004 2003
Cash Share-based Cash Share-based Cash Share-based
Base incentive compensation Base incentive compensation Base incentive compensation
salary payments expense salary payments expense salary payments expense
EUR EUR EUR EUR EUR EUR EUR EUR EUR
Jorma Ollila ............. 1,500,000 3,212,037 3,389,994 1,475,238 1,936,221 2,109,863 1,400,000 2,253,192 1,028,775
CEO and Chairman
Olli-Pekka Kallasvuo ....... 623,524 947,742 666,313 584,000 454,150 394,979 575,083 505,724 154,316
President since October 1, 2005
Pekka Ala-Pietil¨ a ......... 717,000 946,332 745,733 717,000 479,509 493,556 711,279 520,143 218,615
President until October 1,
2005(1)
(1) Pekka Ala-Pietil¨
a served as the President of the Group and member of the Group Executive Board until he resigned from these
positions effective October 1, 2005. As of this date Mr. Ala-Pietil¨ a held the role of Executive Advisor until January 31, 2006,
when he ceased employment with the Group. For 2006, based on these advisory services, Mr. Ala-Pietil¨ a received a total
payment of EUR 101,717. Based on the service contract, Pekka Ala-Pietil ¨ a is entitled to receive a payment of EUR 956,000 in
2006 for his commitments during 2006.
Total remuneration of the Group Executive Board awarded for the fiscal years ended 2003-2005
was EUR 14,684,602 in 2005 (EUR 13,594,942 in 2004 and EUR 10,859,644 in 2003), which consisted
of base salaries and cash incentive payments. Total share-based compensation expense relating to
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