Nokia Names Microsoft's Elop as New CEO

Nokia named Stephen Elop, who heads Microsoft's business division, as the handset maker's new president and CEO.
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ESPOO, Finland (

TheStreet

) --

Nokia

(NOK) - Get Report

named Stephen Elop, who heads

Microsoft's

(MSFT) - Get Report

business division, as the handset maker's new president and CEO.

Elop will replace CEO Olli-Pekka Kallasvuo on Sept. 21.

With shares of Nokia, the No. 1 maker of handsets in the world, down more than 20% this year, Kallasvuo has been under increasing pressure amid speculation he would be ousted. Nokia has a 33% market share of the world's handset market but has been slow to keep pace with innovative designs from smaller rivals.

Nokia shares rose about 6.5% in Helsinki Friday to €8.25 after the announcement.

"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, Nokia chairman, in a statement Friday. "The Nokia board believes that Stephen has the right industry experience and leadership skills to realize the full potential of Nokia. 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."

-- Written by Joseph Woelfel

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