Analyst Summary
- Nokia published its 2024 Annual Report and filed its Form 20-F with the SEC.
- The Annual General Meeting 2024 took place on April 3, 2024, with a high number of votes cast and strong shareholder support for the Board’s proposals.
- The Board proposes that the number of Board members be ten for the Annual General Meeting 2025.
- Søren Skou and Carla Smits-Nusteling will no longer be available to serve on the Nokia Board of Directors after the Annual General Meeting.
- The Board proposes that eight current Board members be re-elected and that Pernille Erenbjerg and Timo Ihamuotila be elected to the Board for a term ending at the close of the next Annual General Meeting.
- The Group Leadership Team consisted of 11 members on December 31, 2024, including the President and CEO, representing six different nationalities.
- Lorna Gibb was appointed Chief People Officer, Louise Fisk was appointed Chief Communications Officer, Patrik Hammarén was appointed Acting President of Nokia Technologies, and Mikko Hautala was appointed Chief Geopolitical and Government Relations Officer in 2024.
- Justin Hotard’s appointment as President and CEO, effective April 1, 2025, was announced on February 10, 2025.
- Pekka Lundmark received a salary increase of 8.5% in January 2024.
- Pekka Lundmark’s 2024 STI was subject to a scorecard of 60% Nokia operating profit, 20% cash release, 10% gender diversity and 10% health & safety (lost time injury frequency rate).
- The 2021 LTI (performance shares) was subject to the predetermined dividend adjusted share price targets and a three-year performance period which ended in January 2024. Based on the dividend adjusted share price outcome of EUR 3.66, the award vested at 12% of target for Pekka Lundmark and other GLT members who received the grant in 2021.
- The 2025 incentive plans for the President and CEO and the rest of the GLT will follow the structure set out below: Delivering the next year’s step in the strategic plan – STI Comparable Operating Profit 60%(1) Cash Release 20% Continued focus on profitability Achieve a strong cash position Health & Safety 10% – Lost Time Injury Frequency Rate (with a fatality modifier) Women in leadership 5% Women in workforce 5% Deliver on our focus on the continued health and safety of our employees Deliver on our commitment to become a more diverse employer Delivering sustainable value – LTI 50% relative TSR, 40% cumulative reported EPS (adjusted for impairments and M&A), 10% carbon emission reduction (scope 1, 2 and 3) A more rounded and balanced approach reflecting performance over the long term in growing the business and in delivering shareholder value whilst working towards our 2030 goal of 50% carbon emission reduction