Nokia Demonstrates Confidence In Ollila, Extends Contract

ByJohn S. McClenahen At a time when several other senior executives in manufacturing are losing their jobs, Nokia Corp. Chairman and CEO Jorma Ollila has received a clear vote of confidence. Nokia's board has extended his employment contract for five years, a move that promises to keep Ollila in the top spot at the Espoo, Finland-based company through the year 2006. Says Paul J. Collins, vice chairman of Nokia's board and chairman of its personnel committee, "Nokia's board and Jorma Ollila agreed that ensuring continuity of leadership and management is particularly critical as we face an unprecedented technological transition in the mobile communication business." Collins is referring to the widely anticipated debut of so-called 3G (third-generation) equipment, which, it now seems, will occur in a less-favorable global economic environment than originally anticipated. Ollila, who is 51 years old, joined Nokia in 1985, was appointed president and CEO in 1992, and was named chairman and CEO in 1999.