Last week RCR reported that Nokia CEO Olli-Pekka Kallasvuo’s next speech to shareholders might well be his last, but despite significant pressure on the firm, it would appear the Finnish firm’s board still supports the management team and its strategy.
Reuters reports that Chairman of Nokia’s board, Jorma Ollila, told shareholders on Thursday at an annual meeting that he and his colleagues support management in this,” referring to the firm’s focus on its Internet service business, selling applications.
Nokia’s Ovi Store and Internet services, have cost shareholders over $10 billion to date, counting just 82.7 million users and with a targeted revenue of just two billion euros ($2.68 billion) for the services in 2011.
The company’s revenues saw a 19% slump in 2009, with operating profits sinking a whopping 76%. Even Nokia’s most valuable asset, its brand, fell 58% over the course of the year according to Millward Brown research.
The delay of Symbian 3 – Nokia’s much anticipated software refresh – succeeded in angering shareholders even more, putting Kallasvuo, who has served the company for half his life, in a rather difficult position.
Although some are still deeply critical of the embattled CEO, especially with share prices losing out on the market’s recovery, it seems Kallasvuo has scraped enough support from the board to fight another day.
At the meeting the Nokia chief did his utmost to persuade his audience that the upcoming generation of devices from the company would do much to catch up with the main competition in the smartphone market.
Reuters notes he then ended his speech by thanking shareholders for continuing support, and sighing deeply.
Nokia CEO still holds board's approval
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