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By: SailorSailor
27 Jan 2003, 09:49 PM EST Msg. 19645 of 19645

Nokia to pay out bonuses after break of one year




After a break of one year, Nokia will distribute earnings-linked bonuses to the majority of its employees. The mobile industry giant will pay out an estimated 30 million euros of its net earnings in bonuses.
Nokia's various bonus schemes are all linked to the company's earnings per share. These programmes cover all Nokia employees, with the exception of top management.
The Nokia bonuses for last year will not be based on the company's earnings per share for the entire year. The pro forma EPS improved by only a couple of percent in 2002, whereas a growth rate of some twenty percent would have been necessary for bonus payout.
However, the Nokia Board of Directors introduced a new bonus scheme during 2002 which promised bonuses if the EPS for the latter half of the year was at least 0.45 euros. The recorded earnings equalled exactly 0.45 euros per share.
The employees will be rewarded three percent of their wage for the last six months of 2002. The Nokia Board has decided that in future, all bonuses will be determined based on the company's earnings over a six-month period. The target will be defined separately each time.
In addition to bonuses, Nokia has numerous stock option schemes. When publishing its financials for 2002 last week, Nokia also announced its Board would propose a new option scheme to the annual general meeting. This option programme will be targeted at key employees.





Marilyn