Nokia CEO Stephen Elop could receive a bonus worth 13 million euros if the Nokia-Microsoft Windows Phone deal is a success.
According to Unwired View, Nokia's board of directors has made some changes to Stephen Elop's salary contract that could see him receiving 750,000 Nokia shares worth 12.75 million euro.
Elop's compensation from Nokia depends heavily on the success of the partnership which was recently announced. Nokia has partnered with software giant Microsoft to make smartphone devices based on the revamped Windows Phone operating system.
Nokia, which is set to gain billions of dollars from the deal, has put its primary Symbian mobile phone OS and Intel's Maemo on the back burner.
Nokia's board of directors has reduced Elop's short term cash incentive plan from 150 per cent of the gross salary to 100 per cent, meaning that the incentive of 1.5 million euros he was to receive if Nokia completed its targets for 2011-2012 will be reduced by 500,000 euros every year.
The board has also lowered the amount of shares he will be getting. Now, his share reward is based on Nokia's overall performance and its stock market share price. The minimum target set for Nokia's share price is 9 euros while the highest is 17 euros. The highest target will be realised if the Nokia-Microsoft deal comes good.