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More high level changes in the works at Nokia

More high-level changes in the works at Nokia

By Kevin J O'brien, New York Times | Updated: 5 June 2012 02:24 IST

Highlights

The shake-up at the top of Nokia widened Monday when the company said the head of its smartphone business would be following the chief executive out the door.

The shake-up at the top of Nokia widened on Monday when the company said the head of its smartphone business would be following the chief executive out the door.

Nokia, which is the largest maker of mobile phones in the world, also confirmed that its longtime board chairman, Jorma Ollila, might step down from the board after the company's general meeting in 2012.

The announcement of the departure of Ansii Vanjoki, a board member and 19-year Nokia veteran, came just days after Nokia appointed Stephen Elop, a Canadian who headed Microsoft's business software division, to be its new chief executive, replacing Olli-Pekka Kallasvuo.

One analyst pointed to the high-level personnel changes as signs that Nokia was seeking a "transformation," after losing ground to Apple and its iPhone.

"It would have been a mixed signal to investors to replace the chief executive and have the board chairman stay on," said Mats Nystrom, an analyst at SEB Enskilda Bank in Stockholm.

Mr. Ollila oversaw the company's ascent to the top of the market during his tenure as chief executive from 1992 through 2006. He also oversaw the selection of Mr. Kallasvuo, who was then his chief financial officer, as his successor.

Mr. Ollila was quoted by Finnish media over the weekend as saying that he intended to remain at the board's disposal as chairman until 2012, a deadline investors interpreted as indicating his intention to leave the company. Nokia confirmed Monday that he was considering stepping down as board chairman in 2012.

Nokia has maintained its global market lead, currently at 38 percent of the market, according to the British research firm Canalys. But the company has struggled to match the iPhone's success and has stagnated in the United States, where it has less than 10 percent of the market. Its share price has lost more than half its value since 2007, when the iPhone was introduced.

"There was a feeling among some investors that the board at Nokia should have done something sooner to address the situation," Mr. Nystrom said.

Mr. Vanjoki ran the smartphone business from 2004-8, and again from May of this year. He was most likely one of several internal candidates considered in Nokia's search for a new chief executive.

At a news conference Friday, Mr. Ollila said the board had considered several internal and external candidates before deciding on Mr. Elop, a 46-year-old native of Ancaster, Ontario, to become the first non-Finn to serve as Nokia chief executive.

In a brief statement Monday, Nokia said Mr. Vanjoki, who holds the title of executive vice president and general manager for mobile solutions, had decided to leave in six months, after his notice period expired.

"I felt the time has come to seek new opportunities in my life," said Mr. Vanjoki, 54, who oversaw development of Nokia's N-Series line of smartphones. "At the same time, I am 100 percent committed to doing my best for Nokia until my very last working day." Mr. Kallasvuo is remaining at the company as chairman of Nokia Siemens Network.

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