Nokia 2009 Annual Report Download - page 133

Equity Grants in 2009
(1)
Name and Principal
Position Year
Grant
Date
Number of
Shares
underlying
Options
Grant
Price
(EUR)
Grant Date
Fair Value
(2)
(EUR)
Performance
Shares at
Threshold
(Number)
Performance
Shares at
Maximum
(Number)
Restricted
Shares
(Number)
Grant Date
Fair Value
(3)
(EUR)
Option Awards Stock Awards
OlliPekka Kallasvuo
President and CEO............ 2009 May 8 235 000 11.18 650 661 117 500 470 000 150 000 3 332 940
Timo Ihamuotila
EVP and Chief Financial Officer . . . 2009 May 8 35 000 11.18 96 908 27 500 110 000 35 000 752 856
Nov 6 20 000 8.76 38 927
Richard Simonson
EVP, Mobile Phones (Chief
Financial Officer until
October 31, 2009) ............ 2009 May 8 60 000 11.18 166 126 30 000 120 000 107 000 1 449 466
Anssi Vanjoki
Executive Vice President,
Markets . .................. 2009 May 8 60 000 11.18 166 126 30 000 120 000 40 000 863 212
Kai O
¨ista
¨mo ¨
Executive Vice President,
Devices . .................. 2009 May 8 60 000 11.18 166 126 30 000 120 000 50 000 935 174
Mary McDowell
Executive Vice President, Chief
Development Officer . . ........ 2009 May 8 55 000 11.18 152 283 27 500 110 000 38 000 800 873
(1)
Including all equity awards made during 2009. Awards were made under the Nokia Stock Option
Plan 2007, the Nokia Performance Share Plan 2009 and the Nokia Restricted Share Plan 2009.
(2)
The fair value of stock options equals the estimated fair value on the grant date, calculated using
the BlackScholes model. The stock option exercise price was EUR 11.18 on May 8, 2009 and
EUR 8.76 on November 6, 2009. NASDAQ OMX HELSINKI closing market price at grant date on
May 8, 2009 was EUR 10.84 and on November 6, 2009 was EUR 8.84.
(3)
The fair value of performance shares and restricted shares equals the estimated fair value on
grant date. The estimated fair value is based on the grant date market price of the Nokia share
less the present value of dividends expected to be paid during the vesting period. The value of
performance shares is presented on the basis of a number of shares, which is two times the
number at threshold.
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
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