Elop gets $33.4 million for leaving Nokia

When Nokia CEO Stephen Elop started getting cosy to Microsoft, some shareholders thought that he was simply a stooge of the shy and soon to be retiring CEO Steve “there is a kind of hush” Ballmer.

But it turns out that Elop has done rather well for himself out of having Microsoft buy the company. Not only is he now the executive vice president (EVP) of the Microsoft Devices Group overseeing an expanded devices business that includes Lumia smartphones and tablets, Nokia mobile phones, Xbox hardware, Surface, Perceptive Pixel products, and accessories, he is also $33.4 million richer.

With the Nokia/Microsoft deal officially closed last week on April 25, it was revealed that Elop was paid $33.4 million in cash and shares after he left Nokia, and thanks to rising Nokia share prices, he got more than expected.

Elop himself is returning to the software giant after the deal closed on Friday, and based on Nokia’s share price in September he had been in line to get around $26 million for the early termination of his contract.

Elop’s severance payment includes just over $5.55 million in cash when he stood down as Nokia chief executive in September and led the phone unit from then until the closing of the deal with Microsoft.

The unit’s operating loss widened to $424.39 million in the first quarter of this year. Microsoft paid 70 percent of the total severance payment, and Nokia the remaining 30 percent, Nokia said in its 2013 annual report.

All up, it is a good result for Elop. Not only does he return to the Vole Hill in triumph, he is stonkingly rich and in a stronger political position in Microsoft.