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| Nokia appoints Microsoft business manager as new head | Nokia appoints Microsoft business manager as new head |
| (40 minutes later) | |
| Nokia has appointed Microsoft business manager Stephen Elop as its new chief executive. | Nokia has appointed Microsoft business manager Stephen Elop as its new chief executive. |
| Mr Elop will replace the outgoing Olli-Pekka Kallasvuo, who was a lifelong Nokia employee and has been chief executive since 2006. | Mr Elop will replace the outgoing Olli-Pekka Kallasvuo, who was a lifelong Nokia employee and has been chief executive since 2006. |
| The appointment may mark a sea-change in culture at the top of the Finnish mobile phone giant. | The appointment may mark a sea-change in culture at the top of the Finnish mobile phone giant. |
| In July, Nokia reported a 40% slump in second quarter profits, as it struggled to break into the smartphone market. | In July, Nokia reported a 40% slump in second quarter profits, as it struggled to break into the smartphone market. |
| It's a mark of how serious the crisis facing Nokia has become that the company has dumped its chief executive and gone outside Finland for the first time to replace him. | It's a mark of how serious the crisis facing Nokia has become that the company has dumped its chief executive and gone outside Finland for the first time to replace him. |
| The problem is not so much about sales or profits - Nokia is still by far the world's biggest phone manufacturer - as its loss of what you might call thought leadership. | The problem is not so much about sales or profits - Nokia is still by far the world's biggest phone manufacturer - as its loss of what you might call thought leadership. |
| The mobile world used to look to Nokia for innovation - now it looks to the likes of Apple, or HTC or Samsung. | The mobile world used to look to Nokia for innovation - now it looks to the likes of Apple, or HTC or Samsung. |
| A Microsoft executive might seem a strange choice to lead the Finnish firm back to the cutting edge - after all Windows phones have made no headway at all in the smartphone battles. | A Microsoft executive might seem a strange choice to lead the Finnish firm back to the cutting edge - after all Windows phones have made no headway at all in the smartphone battles. |
| But Steve Elop has had a varied career across the software and communications industries, including spells at Adobe and Juniper Networks. | But Steve Elop has had a varied career across the software and communications industries, including spells at Adobe and Juniper Networks. |
| One former colleague describes him as "an incredible leader". He will need those skills to convince the sceptics that Nokia phones - and the software that runs on them - can be cool again. | One former colleague describes him as "an incredible leader". He will need those skills to convince the sceptics that Nokia phones - and the software that runs on them - can be cool again. |
| Mr Kallasvua has been facing increasing pressure to quit this year after Nokia issued two profits warnings and its share price fell by more than 40% between March and June. | |
| Markets took the news well, with Nokia up about 6% in early trading on Friday. | Markets took the news well, with Nokia up about 6% in early trading on Friday. |
| Experience | Experience |
| Mr Elop, who will take up his new position at Nokia on 21 September, is currently the head of Microsoft's Business Division. | Mr Elop, who will take up his new position at Nokia on 21 September, is currently the head of Microsoft's Business Division. |
| Prior to working at Microsoft, he has also held senior positions at Juniper Networks, Adobe Systems and Macromedia. | Prior to working at Microsoft, he has also held senior positions at Juniper Networks, Adobe Systems and Macromedia. |
| "The Nokia board believes that Stephen has the right industry experience and leadership skills to realise the full potential of Nokia," said Nokia chairman Jorma Ollila. | "The Nokia board believes that Stephen has the right industry experience and leadership skills to realise the full potential of Nokia," said Nokia chairman Jorma Ollila. |
| "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." | "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." |
| Mr Kallusvuo will stay on as a non-executive director on the Nokia board. He will receive 18 months salary - worth 4.6m euros (£3.8m; $5.8m) - in severance pay. | Mr Kallusvuo will stay on as a non-executive director on the Nokia board. He will receive 18 months salary - worth 4.6m euros (£3.8m; $5.8m) - in severance pay. |
| "The whole Board of Directors joins me in thanking Olli-Pekka for his 30 years at Nokia," said chairman of the board, Jorma Ollila. | "The whole Board of Directors joins me in thanking Olli-Pekka for his 30 years at Nokia," said chairman of the board, Jorma Ollila. |