Nokia, the world's top mobile phone maker, said the head of Microsoft's Business Division Stephen Elop will be its new chief executive, leading a renewed effort to compete in the smartphone market.
"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," chairman Jorma Ollila said today.
Mr Elop will take over from Olli-Pekka Kallasvuo on September 21st.
Under Mr Kallasvuo, who has spent more than half of his life at the company, Nokia has struggled to keep up with new rivals like Apple and Google in the smartphone market.
"Nokia has a communication problem. There is no doubt that Stephen Elop is a better communicator than Kallasvuo," said John Strand, head of telecoms consultancy Strand Consult.
The Finnish company has lacked a hit smartphone model since its 2006 launch of the N95, and has lost out in the top end of the market to Apple's iPhone.
Before joining Microsoft, Mr Elop held senior executive positions in companies like Juniper Networks and Adobe Systems.
"His background looks good," said Pohjola Bank analyst Hannu Rauhala.
Nokia said Mr Kallasvuo would get a severance payment of €4.6 million.
Reuters