Nokia 2006 Annual Report Download - page 108

(2) For the performance share plans 2004, 2005 and 2006, the number of performance shares at
threshold represents the number of performance shares granted. This number will vest as Nokia
shares should the predetermined threshold performance levels of Nokia be met. The maximum
number of Nokia shares will vest should the predetermined maximum performance levels be met.
The maximum number of performance shares equals four times the number originally granted at
threshold. Due to the interim payout in 2006, the maximum number of Nokia shares deliverable
under the 2004 plan is equal to three times the number at threshold.
(3) The intrinsic value is based on the closing market price of a Nokia share on the Helsinki Stock
Exchange as of December 29, 2006 of EUR 15.48. The value of performance shares is presented on
the basis of the company’s estimation of the number of shares expected to vest.
(4) Under the restricted share plans 2003, 2004, 2005 and 2006 awards are granted once a quarter.
For the major part of the awards made under these plans the restriction period ends for the 2003
plan, on October 1, 2006; for the 2004 plan, on October 1, 2007; for the 2005 plan, on October 1,
2008; and for the 2006 plan, on October 1, 2009.
(5) The intrinsic value is based on the closing market price of a Nokia share on the Helsinki Stock
Exchange as of December 29, 2006 of EUR 15.48.
(6) Mr. Ollila resigned as CEO and Chairman of the Group Executive Board effective June 1, 2006, and
ceased employment with Nokia on that date. Mr. Korhonen resigned as member of the Group
Executive Board effective April 1, 2006 and ceased employment with Nokia on May 31, 2006. The
information relating to performance shares and restricted shares held by Mr. Ollila and Mr. Korhonen
as of the date of resignation from the Group Executive Board is represented in the table below.
Performance Shares Restricted Shares
Number of Number of Number
Performance Performance Intrinsic of Intrinsic
Plan Shares at Shares at Value(9) Plan Restricted Value(10)
name(1) Threshold(2) Maximum(2) (EUR) name(4) Shares (EUR)
Jorma Ollila
(as per May 31,
2006)(7) ************ 2004 100 000 300 000 2 316 314 2004 100 000 1 671 000
2005 100 000 400 000 5 160 441 2005 100 000 1 671 000
2006 100 000 400 000 3 342 000 2006 100 000 1 671 000
Pertti Korhonen
(as per March 31,
2006)(8) ************ 2003 35 000 597 800
2004 12 500 37 500 295 950 2004 25 000 427 000
2005 15 000 60 000 791 206 2005 35 000 597 800
(7) Mr. Ollila was entitled to retain performance shares and restricted shares granted to him prior to
June 1, 2006 as approved by the Board of Directors.
(8) Mr. Korhonen’s performance share and restricted share grants were forfeited upon termination of
employment in accordance with the plan rules.
(9) The intrinsic value is based on the closing market price of Nokia shares on the Helsinki Stock
Exchange as of May 31, 2006 of EUR 16.71 in respect of Mr. Ollila and as of March 31, 2006 of
EUR 17.08 in respect of Mr. Korhonen. The value of performance shares is presented on the basis
of the company’s estimation of the number of shares expected to vest.
(10) The intrinsic value is based on the closing market price of Nokia share on the Helsinki Stock
Exchange as of May 31, 2006 of EUR 16.71 in respect of Mr. Ollila and as of March 31, 2006 of
EUR 17.08 in respect of Mr. Korhonen.
For gains realized upon exercise of stock options or delivery of Nokia shares on the basis of
performance shares and restricted shares granted to the members of the Group Executive Board,
please refer to Stock Options Exercises and Settlement of Shares table on page 108.
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