Nokia 2010 Annual Report Download - page 139

Incentive as a % of Annual Base Salary in 2010
Position
Minimum
Performance
Target
Performance
Maximum
Performance Measurement Criteria
President and CEO
(1)
....... 0% 100% 225% (a) Financial and Business
Objectives
(includes targets
for net sales, operating
profit and operating cash
flow management and key
business goals)
0% 25% 37.5%
(c) Total Shareholder
Return
(2)
(comparison made
with key competitors in the
high technology,
telecommunications and
Internet services industries
over one, three and five
year periods)
0% 25% 37.5%
(d) Strategic Objectives
Total ................... 0% 150% 300%
Group Executive Board ..... 0% 75% 168.75%
(a) Financial Objectives
(includes targets for net
sales, operating profit and
operating cash flow
management)
(b) Individual Strategic
Objectives
(as described
below)
0% 25% 37.5%
(c) Total Shareholder
Return
(2)(3)
(comparison
made with key competitors
in the high technology,
telecommunications and
Internet services industries
over one, three and five
year periods)
Total ................... 0% 100% 206.25%
(1)
Applies for OlliPekka Kallasvuo, President and CEO until September 20, 2010. For Stephen Elop,
President and CEO from September 21, 2010, shortterm incentive target is 150% of base pay,
paid to him pro rata for year 2010, based on his hire date.
(2)
Total shareholder return reflects the change in Nokia’s share price during an established time
period, including the amount of dividends paid, divided by Nokia’s share price at the beginning of
the period. The calculation is conducted in the same manner for each company in the peer group.
(3)
Only certain members of the Group Executive Board are eligible for the additional 25% total
shareholder return element.
The shortterm incentive payout is based on performance relative to targets set for each
measurement criteria listed in the table above and includes: (1) a comparison of Nokia’s actual
performance to preestablished targets for net sales, operating profit and operating cash flow
management and key business goals and (2) a comparison of each executive officer’s individual
performance to his/her predefined individual strategic objectives and targets. Individual strategic
objectives include key criteria which are the cornerstone for the success of Nokia’s longterm strategy
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