Nokia 2014 Annual Report Download - page 101

99
Corporate governance
NOKIA IN 2014
Summary compensation table
The summary compensation table (the “Summary Compensation Table”) below reects the cash compensation and benets earned in 2014
and the value of long-term incentive awards made to the Nokia Group Leadership Team members serving as of the end of 2014. In addition,
theSummary Compensation Table sets forth the compensation of each other individual who served as Chief Executive Ocer or Chief Financial
Ocer at any point during the year, as well as up to two otherNokia Group Leadership Team members who would have beenamong the three
most highly compensated had they still beenserving Nokia Group Leadership Team members at year-end.
A signicant portion of equity grants presented in the below Summary Compensation Table to the Nokia Group Leadership Team members
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 Nokia Group Leadership Team member (but rather the
accounting grant date fair value of each applicable 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 Nokia Group Leadership Team member is lower than the amount required
to be reported in the Summary Compensation Table.
Name and principal position(1) Year
Salary
EUR
Short-term
variable
compensation(2)
EUR
Stock
awards(3)
EUR
Option
awards(3)
EUR
Change in
pension
value and
nonqualified
deferred
compensation
earnings(4)
EUR
Payments
to defined
contribution
retirement
plans(4)
EUR
All other
compensation
EUR
Total(15)
EUR
Rajeev Suri
President and CEO 2014 932 666 1 778 105 3 759 936 0 0 686 206 168 645(5) 7 325 558
Risto Siilasmaa
Interim CEO, September 3,
2013 to April 30, 2014/
Current Board Chairman
2014
2013 0
00
00
00
00
0191 475 01 126 323(6)
500 000 1 317 798 500 000
Timo Ihamuotila
EVP, Group Chief Financial
Ocer/Interim President,
September 3, 2013 to
April 30, 2014
2014
2013
2012
621 277
578 899
570 690
945 579
628 909
57 750
954 444
1 136 530
539 300
0
547 748
106 575
0
0
0
213 277
152 689
122 093
113 337(7)
314 066
40 146
2 847 914
3 358 841
1 436 554
Samih Elhage
EVP, Chief Financial and
Operating Ocer,
NokiaNetworks
2014 593 333 703 221 1 388 288 0 0 96 554(8) 154 183(8) 2 935 579
Ramzi Haidamus(9)(10)
President, Nokia
Technologies
2014 158 998 169 490 716 220 0 0 1 663 10 796(11) 1 057 167
Sean Fernback
President, HERE 2014 321 555 267 259 620 432 073 967 0127 428(12) 1 410 641
Stephen Elop
Former President and
CEO/Former EVP,
Devices & Services
2014
2013
2012
338 088
1 105 171
1 079 500
0
769 217
0
0
5 385 660
2 631 400
0
2 197 691
497 350
0
0
0
229 213
196 992
247 303
24 489 143(13)
121 765
69 395
25 056 444
9 776 496
4 524 948
Louise Pentland(9)(10)
Former EVP, Chief
Legal Ocer
2014
2013
2012
282 776
441 499
466 653
0
476 027
46 321
0
905 120
407 730
0
427 329
81 708
0
0
0
9 485
9 324
9 787
2 835 913(14)
530
12 974
3 128 174
2 259 829
1 025 173
(1) The positions set forth in this table are the positions at year-end of the Nokia Group Leadership Team. For Mr. Elop and Ms. Pentland the table sets forth their positions at the time of their
membership in the Nokia Group Leadership Team.
(2) Short-term variable compensation payments are part of Nokia’s short-term cash incentive plan. The amount consists of the annual incentive cash payment and/or other short-term variable
compensation earned and paid or payable by Nokia for the respective scal year.
(3) Amounts shown represent the grant date fair value of equity grants awarded for the respective scal 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 ocers, is as follows: Mr. Suri EUR 7 519 872; Mr. Ihamuotila EUR 1 908 888; and Mr. Elhage EUR 2 776 576; Mr. Fernback EUR 986 903; and Mr. Haidamus EUR 1 432 440. A signicant
portion of these equity grants to the Nokia Group Leadership Team is tied to Nokia’s performance 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 ocer (but rather the accounting grant date fair value of each applicable grant, which is required
to be reported in the Summary Compensation Table).
(4) Pension arrangements in Finland and the United States are characterized as dened contribution pension arrangements under IAS 19, Employee Benets. The executives based in Finland are
participants in the state mandated TyEL pension arrangements. Executives in the United States participate in the plan described in footnote 10 to this table. Mr. Fernback is a participant in the
Nokia Germany Dened Benet pension plan where the pension is determined by reference to his base salary, age and years of service.
(5) All other compensation for Mr. Suri in 2014 includes: housing of EUR 62 628; home security EUR 1 080; EUR 31 576 for travel assistance; EUR 34 055 for tuition of minor children; tax 17 038 services
and EUR 22 268 for premiums paid under supplemental medical and disability insurance and for mobile phone and driver.
(6) All other compensation for Mr. Siilasmaa represents the value of the shares bought on the open market for Mr. Siilasmaa as compensation for his achievement in his role as Interim CEO, the balance
of which he received as shares after deducting associated taxes and social security contributions.
(7) All other compensation for Mr. Ihamuotila in 2014 includes: EUR 10 320 for car allowance; EUR 292 for security; and EUR 2 725 for premiums paid under supplemental medical and disability insurance
and for mobile phone and driver. EUR 100 000 in respect of an allowance given to recognize the additional responsibilities Mr. Ihamuotila took on as of September 3, 2013 to April 30, 2014 where he
acted in the role of Interim President and Chairman of the Nokia Leadership Team while also continuing to serve as Chief Financial Ocer. Mr. Ihamuotila’s executive agreement covered his position as
Executive Vice President and Chief Financial Ocer. In recognition of these additional responsibilities, Mr. Ihamuotila received a total of EUR 250 000 paid in ve monthly installments of EUR 50 000
each commencing in October 2013, the balance of two payments falling into 2014. No other changes were made to his compensation as a result of his additional responsibilities as Interim President.