Nokia 2010 Annual Report Download - page 143

conditions of his service contract, Mr. Kallasvuo is subject to a 12month noncompetition obligation
until September 20, 2011.
For information about the compensation and benefits received by Mr. Elop and Mr. Kallasvuo during
2010, see 6.B “Compensation—Executive Compensation—Summary Compensation Table 2010” and
“Compensation—Executive Compensation—Equity Grants in 2010”.
Pension Arrangements for the Members of the Nokia Leadership Team (the Group Executive Board
until February 11, 2011)
The members of the Nokia Leadership Team participate in the local retirement programs applicable to
employees in the country where they reside. Executives in Finland, including Mr. Elop, President and
CEO, 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 during the
first four years 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 shortterm cash incentive.
Contributions to the Restoration and Deferral Plan will be matched 100% up to 8% of eligible
earnings, less contributions made to the 401(k) plan.
As part of his supplemental retirement plan agreement, OlliPekka Kallasvuo could have retired at the
age of 60 with full retirement benefits to the extent that he had remained employed at that time by
Nokia. The amount of that retirement benefit would have been calculated as if Mr. Kallasvuo had
continued his service with Nokia through the retirement age of 65. As Mr. Kallasvuo’s employment
with Nokia ended prior to his 60th birthday, this supplemental pension benefit was forfeited and
Nokia reversed the actuarial liability of EUR 10 154 000 associated with it.
Hallstein Moerk left the Group Executive Board as of March 31, 2010 and retired from employment
with Nokia as of September 30, 2010 pursuant to the terms of his employment and pension
agreement with Nokia. Nokia’s obligation was settled in full and it no longer has any actuarial
liability for Mr. Moerk’s pension benefit.
Actual Compensation for the Members of the Group Executive Board in 2010
At December 31, 2010, Nokia had a Group Executive Board consisting of nine members. Changes in
the composition in the Group Executive Board during 2010 and subsequently are explained above in
Item 6A. “Directors and Senior Management—Nokia Leadership Team”.
The following report discusses executive compensation in 2010 when the Nokia Leadership Team was
called the Group Executive Board, and thus all references are made to the Group Executive Board.
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
2010.
Gains realized upon exercise of stock options and sharebased incentive grants vested for the
members of the Group Executive Board during 2010 are included in Item 6E. “Share Ownership.”
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