Nokia 2013 Annual Report Download - page 130

NOKIA IN 2013
128
Equity grants in  
Option awards Stock awards
Number of Grant Performance Performance Grant
shares Grant date sharesat sharesat Restricted date
Name and principal Grant underlying price fairvalue 3 threshold maximum shares fair value 4
position 2 Year date options EUR EUR (number) (number) (number) EUR
Stephen Elop, 2013 May 15 1 800 000 2.71 2197 692 562 500 2 250 000
EVP Devices & Services, 2013 March 13 785 000 5385 660
former President and CEO
Risto Siilasmaa, 2013 — 0 0 0 0 0 0 0
Chairman of the Board of
Directors. Interim CEO
Timo Ihamuotila, 2013 May 15 370 000 2.71 451 748 110 000 440 000
EVP, Chief Financial Offi cer, 2013 March 13 130 000 990 280
Interim President 2013 November 13 25 000 146 125
Louise Pentland, 2013 May 15 350 000 2.71 427 329 100 000 400 000
EVP, Chief Legal Offi cer 2013 March 13 120 000 905 120
Michael Halbherr, 2013 May 15 370 000 2.71 451 748 110 000 440 000
EVP, HERE 2013 March 13 130 000 990 280
Jo Harlow, 2013 May 15 370 000 2.71 451 748 110 000 440 000
EVP, Smart Devices 2013 March 13 130 000 990 280
 Including all equity awards made during . Awards were made under
the Nokia Stock Option Plan , the Nokia Performance Share Plan 
and the Nokia Restricted Share Plan .
 The positions set forth in this table are the positions of the named execu-
tive officers as of December , .
 The fair value of stock options equals the estimated fair value on the
grant date, calculated using the Black-Scholes model. The stock option
exercise price was EUR . on May , . NASDAQ OMX Helsinki closing
market price was EUR . at grant date on May , .
For information with respect to the Nokia shares and equity
awards held by the members of the Nokia Leadership Team as
at December , , please see “Share ownership”.
EQUITY-BASED INCENTIVE PROGRAMS
General
The Board of Directors approved on February ,  Nokia
equity based incentive programme for the year . The pro-
gramme for  will be explained in more detail under “Nokia
eguity based incentive programme ”.
During the year ended December , , we administered
two global stock option plans, four global performance share
plans, four global restricted share plans and an employee
share purchase plan. Both executives and employees partici-
pate in these plans. Our compensation programs promote
long-term value creation and sustainability of the company
and are designed to ensure that compensation is based on
performance. Performance shares have been the main ele-
ment of the company’s broad-based equity compensation
program for several years to emphasize the performance ele-
ment in employees’ long-term incentives.
The primary equity instruments for the executive employ-
ees were performance shares and stock options. Restricted
shares have also been used for executives for retention pur-
poses. The portfolio approach has been designed to build an
optimal and balanced combination of long-term equity-based
incentives and to help focus recipients on long term fi nancial
performance as well as on share price appreciation, thus align-
ing recipients’ interests with those of shareholders. For direc-
tors below the executive level, the primary equity instruments
have been performance shares and restricted shares. Below
 The fair value of performance shares and restricted shares equals the
estimated fair value on the grant date. The estimated fair value is based
on the grant date market price of the Nokia share less the present value
of dividends expected to be paid during the vesting period. The value
of performance shares is presented on the basis of a number of shares,
which is two times the number at threshold.
the director level, performance shares and restricted shares
have been used on a selective basis to ensure retention and
recruitment of individuals with functional mastery and other
employees deemed critical to Nokia’s future success.
The equity-based incentive grants are conditioned upon
continued employment with Nokia, as well as the fulfi llment
of performance and other conditions, as determined in the
relevant plan rules.
The participant group for the  equity-based incentive
program continued to include employees from many levels
of the organization. As at December , , the aggregate
number of participants in all of our active equity-based pro-
grams was approximately   and approximately   as at
December , .
Stock option, performance share and restricted share
grants to the President and CEO are made upon recom-
mendation by the Personnel Committee and approved by
the Board of Directors and confi rmed by the independent
directors of the Board. The interim CEO was not eligible to
receive any equity-based incentive grants and did not receive
any grants during . The interim President’s stock option
and restricted share grants in recognition of his additional
responsibilities as the interim President were made upon
recommendation by the Personnel Committee and approved
by the Board of Directors in accordance with the terms and
conditions of the plans. Stock option, performance share and
restricted share grants to the other Nokia Group Leadership
Team members and other direct reports of the President and
CEO are approved by the Personnel Committee. Stock op-
tion, performance share and restricted share grants to other
eligible employees are approved by the President and CEO on a
quarterly basis, based on an authorization given by the Board
of Directors.