Nokia Execs Are Trying to Respond Quickly to Market Challenges

By Michelle Maisto  |  Posted 2012-05-07 Print this article Print

During its first quarter, Nokia experienced a 29 percent drop in net sales and announced sales of more than 2 million Lumia handsets€”its first smartphone lineup to run Microsoft€™s Windows Phone operating system. While at least one analyst has pointed out that it took Google five quarters to sell as many Android-running phones, following the platform€™s introduction, the number also represents the intense competition and challenges that Nokia faces in the mobile market. Apple, during the same period, sold 35.1 million iPhones.

Elop, during Nokia€™s earnings call, said the company is €œintensely focused€ on these challenges and working to accelerate the pace at which it is responding.

During the AGM, Nokia said in a May 4 announcement on the event, 11 members of the board of directors were elected, including Stephen Elop. Risto Siilasmaa was elected chairman of the board, replacing Ollila, and Dame Marjorie Scardino as vice chairman of the board.

For their efforts, Siilasmaa will receive an annual salary of 440,000 euros, Scardino 150,000 euros and each member of the board will receive 130,000 euros€”except for Elop, who €œwill not receive any remuneration pursuant to his membership in the board of directors.€

To help Nokia, the AGM also authorized the board to repurchase a maximum of 360 million Nokia shares.

€œThe shares may be repurchased in order to develop the capital structure of the company, finance or carry out acquisitions or other arrangements, settle the company€™s equity-based incentive plans, be transferred for other purposes, or be cancelled,€ it said in the statement, noting the authorization is effective until June 30, 2013, and no plans are in place for a repurchase this year.

Michelle Maisto has been covering the enterprise mobility space for a decade, beginning with Knowledge Management, Field Force Automation and eCRM, and most recently as the editor-in-chief of Mobile Enterprise magazine. She earned an MFA in nonfiction writing from Columbia University, and in her spare time obsesses about food. Her first book, The Gastronomy of Marriage, if forthcoming from Random House in September 2009.

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