Nokia 2013 Annual Report Download - page 129

127
COMPENSATION OF THE BOARD OF DIRECTORS AND THE NOKIA GROUP LEADERSHIP TEAM
Summary compensation table 
Change in
pension value
and
nonqualifi ed
Variable deferred
compen- Stock Option compensation All other
Name andprincipal Salary sation 2 awards 3 awards 3 earnings 4 compensation Total
position 1 Year EUR EUR EUR EUR EUR EUR EUR
Stephen Elop, 2013 1 105 171 769 217 5 385 660 2 197 691 75 554 121 765 5 9 655 059
EVP Devices & Services, 2012 1 079 500 0 2 631 400 497 350 56 776 69 395 4 334 421
former President and CEO 2011 1 020 000 473 070 3752 396 539 443 73 956 2 085 948 7 944 813
Risto Siilasmaa 2013 0 0 0 0 500 000 6 500 000
Chairman of the Board
of Directors, Interim CEO
Timo Ihamuotila 2013 578 899 628 909 1 136 530 547 748 160 630 314 066 7 3 366 782
EVP, Chief Financial Offi cer, 2012 570690 57750 539300 106575 262183 40146 1 576644
Interim President 2011 550 000 173 924 479 493 185 448 150 311 8 743 1 547 919
Louise Pentland 8 2013 441 499 476 027 905 120 427 329 9 324 9, 10 2 259 299
EVP, Chief Legal Offi cer 2012 466 653 46 321 407 730 81 708 22 761 1 025 173
Michael Halbherr 2013 440 375 206 426 990 280 451 748 89 849 11 2 178 678
EVP, HERE 2012 411 531 44 038 539 300 106 575 61 477 1 162 921
Jo Harlow 8 2013 533 436 0 990 280 451 748 62 415 12 2 037 879
EVP, Smart Devices 2012 555296 55494 539300 106575 58 732 1 315397
 The positions set forth in this table are the positions of the named execu-
tive officers as of December , .
 The amount consists of the annual short term variable compensation and/
or other incentives earned and paid or payable by Nokia for the respective
fiscal year. The amount above is inclusive of any discretionary variable
spot compensation earned by active Nokia Leadership Team members for
specific contributions during the year.
 Amounts shown represent the grant date fair value of equity grants
awarded for the respective fiscal year. The fair value of stock options
equals the estimated fair value on the grant date, calculated using the
Black-Scholes model.
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 a Nokia share less the present value of
dividends expected to be paid during the vesting period. The value of
the performance shares is presented on the basis of granted number of
shares, which is two times the number of shares at threshold.
The value of the stock awards with performance shares valued at
maximum (four times the number of shares at threshold), for each of the
named executive officers, is as follows: Mr. Elop EUR   ;
Mr. Ihamuotila EUR   ; and Ms. Pentland EUR   ; Mr. Halbherr
EUR   and Ms. Harlow EUR   .
 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 , , 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 valua-
tion 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.
 All other compensation for Mr. Elop in  includes: EUR   for tax
services for fiscal years ,  and ; housing of EUR ; EUR
 for participation in a health assessment and leadership perfor-
mance program; home security EUR  ; and EUR   taxable benefit
for premiums paid under supplemental medical and disability insurance
and for mobile phone and driver.
 All other compensation for Mr. Siilasmaa in  includes: EUR   as
compensation for his additional responsibilities as Interim CEO, % of
this amount was delivered to him in shares bought on the open market.
The remaining % was paid in cash, most of which was used to cover the
estimated associated taxes. The table does not include the compensation
he is paid for his role as Chairman of the Board of Directors.
 All other compensation for Mr. Ihamuotila in  includes: EUR  
for car allowance; EUR   for security and EUR   taxable benefit
for premiums paid under supplemental medical and disability insurance
and for mobile phone and driver; EUR   for participation in a health
assessment and leadership performance program. In recognition of
additional responsibilities for his role as acting President, Mr. Ihamuotila
received EUR   cash paid in  installments starting in October ,
resulting in EUR   being paid in  and EUR   being paid in
. Additionally, he received an equity grant value EUR   (included
in the stock award and stock options columns) which will vest in accord-
ance with normal plan rules.
 Salaries, benefits and perquisites for Ms. Harlow and Ms. Pentland were
paid and denominated in GBP and USD, respectively. Amounts were
converted using year-end  USD/EUR exchange rate of . and GPB/
EUR rate of .. For year  disclosure, amounts were converted using
year-end  USD/EUR exchange rate of . and GPB/EUR exchange rate
of .. For year  disclosure, amounts were converted using year-end
 USD/EUR and GPB/EUR exchange rate of . and ., respectively.
 Ms. Pentland participated in Nokia’s U.S Retirement Savings and Invest-
ment Plan. Under this (k) plan, participants elect to make voluntary
pre-tax contributions that are % matched by Nokia up to % of eligible
earnings. % 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 em-
ployees to defer up to % of their salary and % of their short-term
variable incentive. Contributions to the Restoration and Deferral Plan
are matched % up to % of eligible earnings, less contributions made
to the (k) plan. The company’s contributions to the plan are included
under “All Other Compensation Column” and noted hereafter.
 All other compensation for Ms. Pentland in  includes: EUR   com-
pany contributions to the (k) Plan and EUR  provided under Nokia’s
international assignment policy in the UK.
 All other compensation for Mr. Halbherr in  includes: EUR  
company contributions to the German Pension Plan and EUR   for car,
fuel, account maintenance and health insurance and EUR   for partici-
pation in a health assessment and leadership performance program.
 All other compensation for Ms. Harlow in  includes: EUR  
company’s contributions to the UK Pension Plan; EUR   for car and fuel
and EUR  for health insurance; EUR   service award and EUR 
for participation in a health assessment and leadership performance
program.
A signifi cant portion of equity grants presented in the below
Summary compensation table to the named executive offi cers
are tied to the performance of the company and aligned with
the value delivered to shareholders. Therefore, the amounts
shown are not representative of the amounts that will actually
be earned and paid out to each named executive offi cer (but
rather the accounting grant date fair value of each applica-
ble grant, which is required to be reported in the Summary
compensation table). In fact, for each of the years reported,
the compensation “realized” by each named executive of-
fi cer is lower than the amount required to be reported in the
Summary compensation table.