Nokia 2011 Annual Report Download - page 162

Pension Arrangements for the Members of the Nokia Leadership Team
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, participate in
the Finnish TyEL pension system, which provides for a retirement benefit based on years of service
and earnings according to prescribed statutory rules. 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.
Actual Compensation for the Members of the Nokia Leadership Team in 2011
At December 31, 2011, Nokia had a Nokia Leadership Team consisting of 13 members. Changes in
the composition in the Nokia Leadership Team during 2011 and subsequently are explained above in
Item 6A. “Directors and Senior Management—Nokia Leadership Team”.
The following tables summarize the aggregate cash compensation paid and the long-term equity-
based incentives granted to the members of the Nokia Leadership Team under our equity plans in
2011.
Gains realized upon exercise of stock options and share-based incentive grants vested for the
members of the Nokia Leadership Team during 2011 are included in Item 6E. “Share Ownership.”
Aggregate Cash Compensation to the Nokia Leadership Team for 2011(1)
Year
Number of
Members on
December 31
Base
Salaries
Cash
Incentive
Payments(2)
EUR EUR
2011 ................................ 13 6229909 2166514
(1) Includes base salary and cash incentives paid or payable by Nokia for the 2011 fiscal year. The
cash incentives are paid as a percentage of annual base salary based on Nokia’s short-term cash
incentives. Includes compensation paid to Alberto Torres for the period until February 10, 2011,
Richard Green until September 21, 2011, Tero Ojanperä until September 30, 2011 and Colin
Giles, Jo Harlow and Louise Pentland as from February 11, 2011, Michael Halbherr as from
July 1, 2011 and Henry Tirri as from September 22, 2011.
(2) Excluding any gains realized upon exercise of stock options, which are described in Item 6E.
“Share Ownership.”
Long-Term Equity-Based Incentives Granted in 2011(1)
Nokia Leadership
Team(4)(5) Total
Total number
of participants
Performance Shares at Threshold(2)(3) ...... 716500 5410211 4350
Stock Options ......................... 3383000 11751907 3200
Restricted Shares ...................... 726000 8024880 1050
(1) The equity-based incentive grants are generally forfeited if the employment relationship terminates
with Nokia prior to vesting. The settlement is conditional upon performance and/or service
conditions, as determined in the relevant plan rules. For a description of our equity plans, see
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