Nokia CEO Ousted, Replaced by Microsoft Exec Stephen Elop

Nokia's president and CEO, Olli-Pekka Kallasvuo, will step down and be replaced by Microsoft executive Stephen Elop, Nokia announced Friday.

Elop (below) is currently head of Microsoft's business division. His focus at Nokia, he said in a statement, will be to strengthen the company's position in mobile communications.

"Nokia has a unique global position as well as a great brand upon which we can build. The company has deeply talented and dedicated people, and I am confident that together we can continue to deliver innovative products that meet the needs of consumers," Elop said. "The Nokia slogan clearly states our key mission: Connecting People, which will acquire new dimensions as we build our portfolio of products, solutions and services."

"[Elop's] strong software background and proven record in change management will be valuable assets as we press harder to complete the transformation of the company," said Jorma Ollila, chairman of the Nokia Board of Directors. "We believe that Stephen will be able to drive both innovation and efficient execution of the company strategy in order to deliver increased value to our shareholders."

Kallasvuo, meanwhile, will leave his post as president and CEO on Sept. 20, but resign his position on the Nokia board of directors immediately. He will continue to chair the board of Nokia Siemens in a non-executive capacity, Nokia said.

He will receive a severance package worth approximately $5.8 million, as well as the value of 100,000 Nokia shares.

Kallasvuo has been with Nokia since 1980. He was named president and chief operating officer in 2005 and CEO in 2006. He has also served as the company's corporate counsel, chief financial officer, and executive vice president and general manager of Mobile Phones.

Reports that Nokia was looking to replace its CEO emerged in July, but Nokia declined comment at that time.

At Microsoft, Elop worked on the release of Office 2010 and SharePoint 2010 and Windows 7, among other things. Last year Elop announced an alliance that will bring Microsoft mobile software to Nokia devices in 2010.

About Our Expert

Chloe Albanesius

Executive Editor, News

My Experience

I started out covering tech policy in DC for The National Journal, where my beat included state-level tech news and all the congressional hearings and FCC meetings I could handle. I later covered Wall Street trading tech before switching gears to consumer tech. I now lead PCMag's news coverage.

My Areas of Expertise

Getting my start in DC means I still have a soft spot for tech policy; Congressional hearings can sometimes be as entertaining as a Bravo reality show, for better or worse. But PCMag is all about the technology we use every day, as well as keeping an eye out for the trends that will shape the industry in the years ahead (or flop on arrival). I've covered the rise of social media, the iOS vs. Android wars, the cord-cutting revolution that's now left us with hefty streaming bills, and the effort to stuff artificial intelligence into every product you could imagine. This job has taken me to CES in Vegas (one too many times), IFA in Berlin, and MWC in Barcelona. I also drove a Tesla 1,000 miles out west as part of our Best Mobile Networks project. Of late, my focus is on our hard-working team of reporters at PCMag, guiding and editing their robust coverage.

Read the latest from Chloe Albanesius

Read full bio