FINNISH PHONE MAKER Nokia is offering more stock options to senior employees to keep them from jumping ship.
Nokia's fumbling smartphone strategy has led the firm to a downward spiral with credit rating agencies cutting the firm's debt rating to below 'junk' status. Now the firm has decided it will increase the maximum stock options available to senior employees in a bid to keep them with the company.
Nokia said its board of directors had approved an increase of the maximum number of stock options available to be granted from 8.5 million to 11.5 million. Of course what Nokia didn't say is that its stock price has fallen the best part of 80 per cent in the last year.
The firm said, "We believe this is a prudent use of stock options, also designed to align the interests of these key employees with those of the shareholders. Any realization of the value from the stock option awards is dependent on successful execution of the strategy and a sustainable share price growth over the long term."
Nokia said the CEO or the firm's Leadership Team will not be eligible for the increase in stock options.
Stock options might not be enough for Nokia to keep its senior employees, because most of the industry thinks its gamble with Windows Phone isn't paying off as Apple and the gaggle of Android device makers overtake the one-time market leader. µ
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