Nokia 2013 Annual Report Download - page 86

NOKIA IN 2013
84
NOTES TO THE FINANCIAL STATEMENTS
OF THE PARENT COMPANY
1. ACCOUNTING PRINCIPLES
The Parent company Financial Statements are prepared ac-
cording to Finnish Accounting Standards (FAS).
See Note  to Notes to the consolidated fi nancial state-
ments.
2. PERSONNEL EXPENSES
EURm 2013 2012
Wages and salaries 423 738
Pension expenses 66 102
Other social expenses 14 18
Personnel expenses as per profi t
and loss account 503 858
Management compensation
Nokia announced on September ,  that it had entered
into a transaction agreement whereby Nokia will sell substan-
tially all of its Devices & Services business to Microsoft. As a
result of the proposed transaction, Nokia announced changes
to its leadership. These changes were designed to provide
an appropriate corporate governance structure during the
interim period following the announcement of this transaction.
Stephen Elop stepped down from his positions as President
and CEO and Nokia’s Chairman of the Board Risto Siilasmaa and
Chief Financial Offi cer of Nokia Timo Ihamuotila assumed ad-
ditional responsibilities as Interim CEO and Interim President,
respectively, from September , .
The following table sets forth the salary and cash incentive
information awarded and paid or payable by the company to
the Chief Executive Offi cer and President of Nokia Corporation
for fi scal years  – , share-based compensation ex-
pense relating to equity-based awards, expensed by the
company as well as the pension expenses, expensed by the
company. The table includes compensation for the time in-role
or the compensation for the role related responsibilities, only.
Total remuneration of the Nokia Leadership Team awarded
for the fi scal years  –  was EUR    in 
(EUR    in  and EUR    in ), which
consisted of base salaries and cash incentive payments. Total
share-based compensation expense relating to equity-based
awards expensed by the company was EUR    in 
(EUR    in  and EUR    in ). The members
of the Nokia Leadership Team participate in the local retire-
ment programs applicable to employees in the country where
they reside.
Board of Directors
The following table depicts the annual remuneration structure
paid to the members of our Board of Directors, as resolved by
the Annual General Meetings in the respective years.
Base Cash Share-based
salary/ incentive compensation Pension
EUR Year fee 1 payments 1 expense expenses
Risto Siilasmaa Interim CEO
as of September3, 2013 2 2013 500 000 — — —
Timo Ihamuotila Interim President
as of September3, 2013 3 2013 150 000 — 12 107 42 500
Stephen Elop, President and CEO
until September3, 2013 2013 753911 769217 2903226 263 730
2012 1079500 — 1597496 247303
2011 1020000 473070 2086351 280732
 Base salaries are prorated for the time in role, incentive payments repre-
sent full year incentive payment earned under Nokia short term incentive
programs. For interim roles the base salaries or fees for the role related
responsibilities, only.
 As compensation for his additional responsibilities as interim CEO, Risto
Siilasmaa received EUR  , % 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.
 In recognition of additional responsibilities, Timo Ihamuotila will receive
EUR  , out of which EUR   was paid in . In addition, Timo
Ihamuotila received an equity grant with an approximate aggregate grant
date value of EUR   in the form of Nokia stock options and Nokia re-
stricted shares. These grants are subject to Nokia’s Equity plans standard
terms and conditions and vesting schedules.