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Friday, September 10, 2010

Nokia appoints Microsoft's Elop as new CEO

Nokia, the world's top cellphone maker, said Stephen Elop, the head of Microsoft's Business Division, was to be its new chief executive, leading a renewed effort to compete in the smartphone market. "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," chairman Jorma Ollila said on Friday.

Elop will take over from Olli-Pekka Kallasvuo on Sept. 21. Under Kallasvuo, who has spent more than half of his life at the company, Nokia has struggled to keep up with new rivals like Apple and Google in the smartphone market.

"Nokia has a communication problem. Theres is no doubt that Sptephen Elop is a better communicator than Kallasvuo," said John Strand, head of telecoms consultancy Strand Consult.

The Finnish company has lacked a hit smartphone model since its 2006 launch of the N95, and has lost out in the top end of the market to Apple's iPhone. Before joining Microsoft, Elop held senior executive positions in companies like Juniper Networks and Adobe Systems Inc. "His background looks good," said Pohjola Bank analyst Hannu Rauhala. Nokia said Kallasvuo would get a severance payment of 4.6 million euros.

Kallasvuo, a former company lawyer and chief financial officer who married a veteran Nokia attorney, had come under attack from shareholders this year as the stock price tanked.
Keywords:Nokia,Elop,Microsoft

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