Nokia 2008 Annual Report Download - page 108

(4)
Mr. BeresfordWylie does not participate in the equity plans of Nokia. Mr. BeresfordWylie
participates in a longterm cash incentive plan sponsored by Nokia Siemens Networks. His target
incentive covering 20082010 is EUR 1.5 million.
For information with respect to the Nokia shares and equity awards held by the members of the
Group Executive Board, please see Item 6E. “Share Ownership”.
Pension Arrangements for the Members of the Group Executive Board
The members of the Group Executive Board participate in the local retirement programs applicable to
employees in the country where they reside. Executives in Finland participate in the Finnish TyEL
pension system, which provides for a retirement benefit based on years of service and earnings
according to a prescribed statutory system. Under the Finnish TyEL pension system, base pay,
incentives and other taxable fringe benefits are included in the definition of earnings, although gains
realized from equity are not. The Finnish TyEL pension scheme provides for early retirement benefits
at age 62 with a reduction in the amount of retirement benefits. Standard retirement benefits are
available from age 63 to 68, according to an increasing scale.
Executives in the United States participate in Nokia’s Retirement Savings and Investment Plan. Under
this 401(k) plan, participants elect to make voluntary pretax contributions that are 100% matched by
Nokia up to 8% of eligible earnings. 25% of the employer match vests for the participants for each
year of their employment. Participants earning in excess of the Internal Revenue Service (IRS) eligible
earning limits may participate in the Nokia Restoration and Deferral Plan which allows employees to
defer up to 50% of their salary and 100% of their bonus into this nonqualified plan. Contributions to
the Restoration and Deferral Plan in excess of IRS deferral limits will be matched 100% up to 8% of
eligible earnings less contributions made to the 401(k) plan.
OlliPekka Kallasvuo can, as part of his service contract, retire at the age of 60 with full retirement
benefits should he be employed by Nokia at the time. The full retirement benefit is calculated as if
Mr. Kallasvuo had continued his service with Nokia through the retirement age of 65.
Simon BeresfordWylie participates in the Nokia International Employee Benefit Plan (NIEBP). The
NIEBP is a defined contribution retirement arrangement provided to some Nokia and Nokia Siemens
Networks employees on international assignments. The contributions to NIEBP are funded twothirds
by Nokia and onethird by the employee. Because Mr. BeresfordWylie also participates in the Finnish
TyEL system, the company contribution to NIEBP is 1.3% of annual earnings.
Hallstein Moerk, following his arrangement with a previous employer, has also in his current position
at Nokia a retirement benefit of 65% of his pensionable salary beginning at the age of 62. Early
retirement is possible at the age of 55 with reduced benefits.
Service Contracts
OlliPekka Kallasvuo’s service contract covers his current position as President and CEO and Chairman
of the Group Executive Board. As at December 31, 2008, Mr. Kallasvuo’s annual total gross base salary,
which is subject to an annual review by the Board of Directors and confirmation by the independent
members of the Board, is EUR 1 176 000. His incentive targets under the Nokia shortterm cash
incentive plan are 150% of annual gross base salary. In case of termination by Nokia for reasons
other than cause, including a change of control, Mr. Kallasvuo is entitled to a severance payment of up
to 18 months of compensation (both annual total gross base salary and target incentive). In case of
termination by Mr. Kallasvuo, the notice period is six months and he is entitled to a payment for such
notice period (both annual total gross base salary and target incentive for six months). Mr. Kallasvuo
is subject to a 12month noncompetition obligation after termination of the contract. Unless the
contract is terminated for cause, Mr. Kallasvuo may be entitled to compensation during the non
competition period or a part of it. Such compensation amounts to the annual total gross base salary
and target incentive for the respective period during which no severance payment is paid.
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