- Introduction
- Constitutes of Nokia Top Management
- Chief characteristics of Top management officials
- Top management international experience
- Top management executives from acquired companies
- Responsibility of top management for the Corporation performance
- Managers serving in their current position for less than three years
- The role played by stock options in executive compensation
- Top management skills
- References
Introduction
Nokia Company was started in the early 1860s by Fredrik Idestams; its potential in terms of productivity became vivid in early 2000, with its ability to the production of 3G, multimedia devices, and mobile games. Nokia Company is made up of four diverse groups, namely; Mobile Phones, Enterprise elucidations, multimedia, and Networks. Its success relies on the customer relationship with the marketing policies it offers. Currently, the Nokia Company is the leading in terms of diversity in mobile phone production.
Constitutes of Nokia Top Management
Nokia Company governance constitutes of Board of Directors, Group Management Team, chairman and President. The role of the Board of Directors includes being answerable to corporate leadership and the apposite behavior of ordinary activities. The Board of Directors apart from holding the overall juridical power in company-related issues is responsible for the appointment of the President and the Chief Executive Officer. (Nokian Tyres plc, 2011).
The president controls the Group’s business processes and executes company governance in agreement with the guidelines and instructions presented by the Board of Directors, whereas the management team aids him in providing effective administration. The chairman of the Board of Directors presides the general meetings held by the members of the organization.
Chief characteristics of Top management officials
Stephen Elop, a 48 years old man, has a degree in computer engineering and management. Before joining Nokia Company as a Chief Executive Officer, was ahead of Microsoft’s business division. He also contributed immensely to worldwide field functions at Adobe Systems Inc. His many years in the field of Microsoft and Juniper Networks granted him enough experience that is enabling him to govern Nokia Company.
Risto Siilasmaa, current chairman of Nokia, was the former Chief Executive Officer of Data Fellows Company, a company that dealt with computer security. He also served, and presently serves on the Board of Directors of many companies. (Hill & Jones, 2012).
Top management international experience
Apart from having leading product executives with broad international know-how in geospatial skills, Nokia Company has deployed over 130,000 employees in 120 countries that are answerable to executive members.
Top management executives from acquired companies
For it to have effective administration Nokia Company includes executive officials from the acquired companies in the top management. These executive members aid in marketing Nokia products worldwide.
Responsibility of top management for the Corporation performance
Nokia Company has currently failed drastically from its position as one of the competitive companies in the world. Its failure is due to the poor leadership of top management officials. For instance, since the joining of Stephen as the Chief Executive Officer of the Nokia Company, the company has recorded many losses leading to its incompetence and the resignation of executive members including Ollila, the former chairman. (Market Segmentation of Nokia, 2010).
Managers serving in their current position for less than three years
Among the top managers who have served for less than three years in their posts are, Stephen Elop, Wilkinson, and Risto. Elop is the current Chief Executive Officer that substituted Olli-Pekka in late 2010, Simon Wilkinson, former CEO of Purple Labs Company that joined the top managerial position of Nokia Company in April 2012, and Risto Siilasmaa is the current chairman of Nokia that presided Ollila in May 2012. Of the three named top officials, only Simon was promoted internally whereas the other two, Elop and Wilkinson were externally hired into the company.
The role played by stock options in executive compensation
Stock options act as motivation compensation, they are used to hearten and retain individual talents in companies. Apart from stock options encouraging the executives into working industriously to meet the requirements of the shareholders, they also enhance the success of the company. (Aboody & Kasznic, 2010).
Top management skills
Nokia’s top management personnel are well-skilled, for instance, they respond to future challenges by setting five key priorities. The set priorities include effective customer relations, competitive product offering, amicable measures towards demand-supply management, offering immediate solutions to problems, and ensuring Research and Development efficiency. (Nokian Tyres plc, 2011).
References
Aboody, D. & Kasznic, R. (2010). Executive Compensation and Financial Accounting. New York: Now Publishers Inc.
Hill, C. & Jones, G. (2012). Strategic Management: An Integrated Approach. New York: Cengage Learning.
Market Segmentation of Nokia. (2010). Web.
Nokian Tyres plc: Corporate Governance. (2011). Web.