Nokia Taps Microsoft's Elop As CEO To Regain Mobile Mojo

Elop, currently heading Microsoft's Business Division, replaces Olli-Pekka Kallasvuo on Sept. 20 as head of Nokia, which has struggled to maintain its dominant position in the mobile phone market as newcomers Apple and Android gain share. Kallasvuo will receive a severance payment of 18 months salary or about 4.6 million euro and the fair market value of 1000,000 Nokia shares granted to him in 2007, which vest Oct. 1.

"The time is right to accelerate the company's renewal; to bring in new executive leadership with different skills and strengths in order to drive company success," said Jorma Ollila, chairman of Nokia's board of directors, in a statement. "The board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia. His strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company. We believe that Stephen will be able to drive both innovation and efficient execution of the company strategy in order to deliver increased value to our shareholders."

Elop joined Microsoft in January 2008 and oversaw the Information Worker, Microsoft Business Solutions and Unified Communications Groups, according to Microsoft's Web site. The Business Division was responsible for the Microsoft Office system of programs, servers and software-based services, Microsoft Dynamics, business applications for small and midsize businesses, large organizations and divisions of global enterprises and Microsoft's Unified Communications, products that provide complete software-based communications tools to business, according to Microsoft.

Elop previously held senior executive positions at Juniper Networks, Adobe Systems and Macromedia

"Nokia has a unique global position as well as a great brand upon which we can build," Elop said in a statement. "The company has deeply talented and dedicated people, and I am confident that together we can continue to deliver innovative products that meet the needs of consumers."