Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Nokia stock gains on CEO switch

chart_ws_stock_nokiaoyj.top.png By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- Nokia's stock rallied Friday after the Finnish mobile phone maker said it was replacing its chief executive with an executive from Microsoft Corp.

Nokia's board of directors said it hired Stephen Elop for the position of president and CEO. Currently the head of Microsoft's (MSFT, Fortune 500) business division, Elop is scheduled to begin his new job on Sept. 21.

Investors applauded the news, sending Nokia's (NOK) stock up about 2% in the first half hour of trading.

Nokia's current CEO, Olli-Pekka Kallasvuo, is scheduled to step down on Sept. 20, the company said. He will also vacate his position on the company's board of directors, though he will continue to chair the board of Nokia Siemens Networks "in a non-executive capacity," the company said.

The company said the incoming CEO has held executive positions at Juniper Networks (JNPR), Adobe Systems Inc (ADBE). and Macromedia Inc., in addition to Microsoft. Elop has a degree in computer engineering and management from McMaster University in Hamilton, Canada, his home country.

"The time is right to accelerate the company's renewal; to bring in new executive leadership with different skills and strengths in order to drive company success," said Jorma Ollila, chairman of Nokia's board of directors. "The Nokia board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia."

A Nokia spokeswoman in Finland would not say why the company was replacing its CEO. But in July, the company reported ongoing profit declines for the second quarter and Kallasvuo spoke of "continuing competitive challenges."

Nokia's competitors include Apple Inc. (AAPL, Fortune 500), maker of the iPhone, and Research in Motion (RIMM), maker of the BlackBerry. To top of page

Index Last Change % Change
Dow 18,481.48 -65.82 -0.35%
Nasdaq 5,217.70 -42.38 -0.81%
S&P 500 2,175.44 -11.46 -0.52%
Treasuries 1.56 0.01 0.39%
Data as of 11:34pm ET
Company Price Change % Change
Bank of America Corp... 15.40 0.05 0.33%
Chesapeake Energy Co... 6.26 -0.20 -3.10%
Freeport-McMoRan Inc... 11.08 -0.90 -7.51%
Micron Technology In... 15.51 -0.67 -4.14%
Cisco Systems Inc 31.06 0.08 0.26%
Data as of 4:02pm ET
Sponsors

Sections

The U.K. is preparing to split from the European Union, which means about $1.3 trillion in trading relationships will have to be reset. More

Facebook CEO Mark Zuckerberg is going to Rome to hold a live Q&A Monday, following this week's large earthquake. More

Just 15 states are paying enough into their public pension funds to both pay promised benefits to retirees and pay down pension debt. More