Nokia CEO’s pay package halved in 2012

Elop, hired in 2010 from Microsoft Corp. to turn around the Finnish mobile phone maker, earned €4.33 million ($5.63 million) in 2012, down from €7.94 million in 2011.

While his base salary rose by €59,500 to €1.08 million, his stock and option awards fell slightly and he earned no bonus, according to the Thursday filing with the US Securities and Exchange Commission.

His 2011 compensation included about €2 million to make up for income lost as a result of his move from Microsoft.

Nokia’s shares fell 22% last year. The company reported an underlying profit in the fourth quarter thanks to cost cuts, but it axed its annual dividend payment for the first time to shore up its cash position.

The SEC filing included a customary list of risk factors, many of them focused on whether Elop’s controversial decision in 2011 to adopt Microsoft’s untested Windows Phone software would pay off.

Nokia said on Thursday that it will receive more payments from Microsoft than it pays to the software giant this year, but will be a net payer in royalties starting in 2014.

It said its payments to Microsoft will exceed what it receives from the US company by about €500 million ($650 million) over the remainder of their pact. The companies have not disclosed how long their deal will last.

Morgan Stanley said the market had feared a higher net payment from Nokia to Microsoft in coming years. But it said the filing would not affect its forecast for sales of Lumia, Nokia’s Windows Phone handsets. It expects Nokia to ship 40 million Windows Phone handsets in 2013.