Nokia 2007 Annual Report Download - page 103

Instead of the longterm equitybased incentive plans of Nokia, Simon BeresfordWylie participates in
a longterm cash incentive plan sponsored by Nokia Siemens Networks. The longterm cash incentive
plan of Nokia Siemens Networks is designed to align the interests of Nokia Siemens Networks
executives with increased shareholder value of Nokia Siemens Networks and, ultimately, with
increased shareholder value for that of its owners, including Nokia and its shareholders. The plan
provides Nokia Siemens Networks executives an opportunity to earn cash incentives based on the
achievement of predetermined financial goals, including net sales and operating margin. These long
term cash incentive awards of Nokia Siemens Networks are generally forfeited if the executive leaves
employment prior to the end of the plan period.
Information on the actual equitybased incentives granted to the members of our Group Executive
Board is included in “Item 6.E Share Ownership.”
Actual Executive Compensation for 2007
At December 31, 2007, Nokia had a Group Executive Board consisting of 12 members. The only change
in the membership of our Group Executive Board during 2007 was the appointment of Timo
Ihamuotila as a new member of the Group Executive Board, effective April 1, 2007.
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
2007.
Gains realized upon exercise of stock options and sharebased incentive grants vested for the
members of the Group Executive Board during 2007 are included in “Item 6.E Share Ownership.”
Aggregate Cash Compensation to the Group Executive Board for 2007
Year
Number of
Members
December 31,
2007 Base Salaries
(3)
Cash
Incentive
Payments
(1)(2)(3)
EUR EUR
2007 ......................................... 12 5354176 8280615
(1)
Includes payments pursuant to cash incentive arrangements for the 2007 calendar year paid or
payable by Nokia for the respective fiscal 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 salary and bonuses to Simon BeresfordWylie, EVP and General Manager Networks of
Nokia for the period until March 31, 2007 and Chief Executive Officer of Nokia Siemens Networks
for the remainder of 2007 and to Timo Ihamuotila from April 1, 2007.
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