The Board of Nokia has come out on both sides of the governance stakes in the recent changes to the Nokia leadership. They did a good thing and a bad thing.
The good thing is that they separated the roles of Chairman and CEO and gave these roles to different people. This is the right thing to do and they should be commended for the move.
The bad thing is that they allowed the former Chairman and CEO to keep the Chairman's position, which is a governance no-no!
Without commenting on Mr. Ollila's success as an executive and on the way he turned a small, local Finish company into a multinational monolith, albeit with its problems, he should go.
Having separated the roles just to give the incumbent a way to stay around is not deserving of good governance credit, so the above good move is questionable.
OAM
See article:
Nokia's chairman and chief executive Jorma Ollila will step down from his post in June 2006 and be replaced by the head of Nokia's mobile phone unit Olli-Pekka Kallasvuo, the group announced today.
Ollila, 54, has served as Nokia's chief executive for more than 13 years and chairman for six years and has built the Finnish group into the world's leading maker of mobile phones.
He will stay on as non-executive chairman after June 2006.
"The Nokia board has had in place a succession process in anticipation of Jorma Ollila's retirement with the objective of maintaining vitality, adapting to a rapidly evolving industry, and ensuring continuity," vice-chairman of the board, Paul Collins, said in a statement.
See full Article.
Posts
