Mark Goldberg – clearly with time on his hands – went through Nortel’s proxy circular and discovered the following:
“Only one officer, the treasurer, has been in their role more than a few years. Of the 28 listed executives, just one was appointed in 2004, 12 in 2005 and 14 in 2006. Flip ahead to the executive compensation chart on page 30 – the favourite page for the voyeurs among us – and not one of the top paid people has been around long enough to show more than their 2006 pay. Usually, this table has 3 years of information. The proxy statement is further evidence that the industry is seeing a new Nortel.”
Not surprised as Mike Z did this at Motorola, too.
When he took over, many of us at the elephant’s feet (bottom rungs) thought he would also purge more than a few of senior management (Prezs, VPs and directors) who had more than hand in making the stupid decisions that put Nortel where it is today–which is what I heard was what the two Garys (hired from Cisco) had recommended before they were heaved overboard.
I was hoping that Mike Z wouldn’t bring “Meet the old boss, same as the new boss” ie: where the new team comes in, makes a lot of promises, makes bold predictions, accomplishes nothing then disappears after three years with nice packages leaving only wreckage behind. So far, the signs don’t look too good.
jayemmay
Mark Goldberg’s review of the proxy circular is a reminder that the circular contains a lot of useful information. His observation that the officers are mostly new blood is well taken. That is the reason that those who are long in the stock have hopes that there will be a turnaround. So far, it’s been slow in coming.
Of the 28 officers, 20 of them have been with Nortel fewer than five years. Last year’s circular showed that of the 28, 18 had fewer than five years with Nortel. The ranks of the officers are now even more new than before. Five officers from last year’s circular are gone. Of the five, two were old timers, (more than five years with the company), and three were newcomers, (fewer than five years).
One day, of course, the ranks of the officers has to settle down.
Last Hurrah
I agree the signs don’t look good so far. A closer look at the proxy circular reveals that folks at the top will get theirs regardless of what happens to the rest of Nortel. I expect that the more Mike Z peels into the Nortel, the more he will realize that there isn’t much to work with. Flat to shrinking market share with hardly any new products in the pipeline doesn’t spell good things for the rest of 2007.
The New Guard at Nortel
Mark Goldberg – clearly with time on his hands – went through Nortel’s proxy circular and discovered the following:
“Only one officer, the treasurer, has been in their role more than a few years. Of the 28 listed executives, just one was appointed in 2004, 12 in 2005 and 14 in 2006. Flip ahead to the executive compensation chart on page 30 – the favourite page for the voyeurs among us – and not one of the top paid people has been around long enough to show more than their 2006 pay. Usually, this table has 3 years of information. The proxy statement is further evidence that the industry is seeing a new Nortel.”