Nokia 2014 Annual Report Download - page 98

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96 NOKIA IN 2014
2014 compensation for the Nokia Group Leadership Team
Compensation mix
The target mix of compensation for the President and CEO and other members of the Nokia Group Leadership Team is shown below.
Consistent with our pay for performance philosophy, a signicant proportion of their compensation is delivered in variable pay,
rewarding performance and aligning their interests with those of shareholders.
Summary of mix of compensation package (%)
0
20 40 60 80 100%
39.1%29.4%31.5%
20.0%25.0%55.0%
President and CEO Other Nokia Group Leadership Team members (average)
Base Base
Short-term incentive Short-term incentive
Long-term incentive Long-term incentive
Short-term incentives
The 2014 short-term incentives for the President and CEO and the Nokia Group Leadership Team are based on the following measurement
criteria, dened in order to reward achievement against key nancial targets and the strategic objectives required to ensure that the right
strategy, culture and operating model are in place to enable sustainable success for Nokia going forward.
Position
As a percentage of base salary
Measurement criteria
Minimum
performance
Target
performance
Maximum
performance
President and CEO 0% 125% 250% Key nancial targets (including net sales, operating prot
andfree cash ow) and key strategic objectives focusing
onthestrategy, culture and infrastructure of the new Nokia
operating model
Other Nokia Group
Leadership Team
members
0% 75%–100% 150%–200% Corporate and business-specic key nancial targets as
appropriate for each role (including net sales, operating prot
or EBITDA and free cash ow) and key strategic objectives
focusing on the priorities of each of our businesses
2014 achievement against the short-term incentive plan targets is shown below, with the strong 2014 nancial performance reected in the
level of payment.
% of target short-term incentive earned in 2014
100
110 120 130 140 150%
138.2%
142.2%
1 President and CEO
2 Other Nokia Group Leadership Team members (average)
Compensation continued