Nokia 2006 Annual Report Download - page 90

Actual Executive Compensation for 2006
At December 31, 2006, Nokia had a Group Executive Board consisting of 11 members. The changes in
the membership of our Group Executive Board during 2006 were as follows: Jorma Ollila resigned
from his position as CEO and Chairman of the Group Executive Board effective June 1, 2006 and, at
that same time, OlliPekka Kallasvuo was appointed as CEO and Chairman of the Group Executive
Board. Pertti Korhonen resigned as a member of the Group Executive Board with effect from April 1,
2006 and ceased employment with us effective June 1, 2006. Niklas Savander was appointed as a
new member to the Group Executive Board as Executive Vice President and Head of Technology
Platforms, effective April 1, 2006.
The following tables summarize the aggregate cash compensation paid and the longterm equity
based incentives granted to the members of the Group Executive Board under our equity plans in
2006.
Gains realized upon exercise of stock options and sharebased incentive grants vested for the
members of the Group Executive Board during 2006 are included in ‘‘Item 6.E Share Ownership.’’
Aggregate Cash Compensation to the Group Executive Board for 2006
Number of
Members Cash
December 31, Incentive
Year 2006 Base Salaries(3) Payments(1)(2)
EUR EUR
2006 ********************************************* 11 5 273 684 3 300 759
(1) Includes payments pursuant to cash incentive arrangements for the 2006 calendar year. The cash
incentives are paid as a percentage of annual base salary based on Nokia’s shortterm cash
incentives.
(2) Excluding any gains realized upon exercise of stock options, which are described in ‘‘Item 6.E
Share Ownership.’’
(3) Includes base pay and bonuses to Pertti Korhonen for the period until March 31, 2006, to Jorma
Ollila until May 31, 2006 (including his compensation as CEO only) and to Niklas Savander as from
April 1, 2006.
LongTerm EquityBased Incentives Granted in 2006(1)
Total Number
Group Executive Board(3) Total of Participants
Performance Shares at Threshold(2) **************** 380 000 5 140 736 13 500
Stock Options*********************************** 1 520 000 11 421 939 5 200
Restricted Shares******************************** 405 000 1 669 050 250
(1) The equitybased incentive grants are generally forfeited if the employment relationship
terminates with Nokia. The settlement is conditional upon performance and service conditions, as
determined in the relevant plan rules. For a description of our equity plans, see Note 23 to our
consolidated financial statements included in Item 18 of this annual report on Form 20F.
(2) At maximum performance, the settlement amounts to four times the number of performance
shares originally granted at threshold.
(3) Including Pertti Korhonen until March 31, 2006, Jorma Ollila until May 31, 2006 and Niklas
Savander from April 1, 2006.
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