Nokia 2012 Annual Report Download - page 154

(4) The change in pension value represents the proportionate change in the liability related to the
individual executives. These executives are covered by the Finnish State employees’ pension act
(“TyEL”) that provides for a retirement benefit based on years of service and earnings according to
the prescribed statutory system. The TyEL system is a partly funded and a partly pooled “pay as
you go” system. Effective March 1, 2008, Nokia transferred its TyEL pension liability and assets to
an external Finnish insurance company and no longer carries the liability on its financial
statements. The figures shown represent only the change in liability for the funded portion. The
method used to derive the actuarial IFRS valuation is based upon available salary information at
the respective year end. Actuarial assumptions including salary increases and inflation have been
determined to arrive at the valuation at the respective year end.
(5) The amounts shown in the total compensation column do not represent the amount actually
payable or paid for the respective fiscal years, as they also include the theoretical pension value
and the theoretical grant date fair value of the stock awards and option awards, and not the actual
value received by the executive.
(6) All other compensation for Mr. Elop in 2012 includes: EUR 39 152 for housing; EUR 10 692 for
participation in a health assessment and leadership performance program; EUR 15 454 for home
security; and EUR 4 097 taxable benefit for premiums paid under supplemental medical and
disability insurance and for mobile phone and driver.
(7) All other compensation for Mr. Ihamuotila in 2012 includes: EUR 11 220 for car allowance; EUR
15 069 service year award; EUR 10 692 for participation in a health assessment and leadership
performance program; EUR 1 285 for home security and EUR 1 880 taxable benefit for premiums
paid under supplemental medical and disability insurance and for mobile phone and driver.
(8) Salaries, benefits and perquisites for Ms. Harlow, Ms. Pentland and Ms. McDowell were paid and
denominated in GBP and USD. Amounts were converted using year-end 2012 USD/EUR
exchange rate of 1.28 and GBP/EUR rate of 0.80. For year 2011 disclosure, amounts were
converted using year-end 2011 USD/EUR and GBP/EUR exchange rate of 1.35 and 0.86,
respectively. For year 2010 disclosure, amounts were converted using year-end 2010 USD/EUR
exchange rate of 1.32.
(9) Ms. McDowell and Ms. Pentland participated in Nokia’s U.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’s match vests for the
participants during each of 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 are
matched 100% up to 8% of eligible earnings, less contributions made to the 401(k) plan. The
Company’s contributions to the plan are included under “All Other Compensation Column” and
noted hereafter.
(10) All other compensation for Ms. Harlow in 2012 includes: EUR 48 252 company contributions to the
UK Pension Plan; EUR 9 709 for car and fuel and EUR 771 for health insurance and home
security.
(11) All other compensation for Mr. Halbherr in 2012 includes: EUR 48 966 company contributions to
the German Pension Plan and EUR 12 511 for car, fuel, account maintenance and health
insurance.
(12) All other compensation for Ms. Pentland in 2012 includes: EUR 10 692 for participation in a health
assessment and leadership performance program; EUR 9 787 company contributions to the
401(k) Plan and EUR 2 282 provided under Nokia’s international assignment policy in the UK.
(13) All other compensation for Ms. McDowell in 2012 includes: EUR 112 024 provided under Nokia’s
international assignment policy in the UK; EUR 10 866 for car allowance; EUR 77 927 for accrued
and unused holiday and payment provided under Nokia’s international assignment policy in the UK
and EUR 64 749 company contributions to the 401(k) and Executive Salary Deferral Plan.
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