Big Bucks for Nortel Executives

By Mark Evans | Published: February 7, 2009

The Ottawa Citizen’s James Bagnell, who has been writing about Nortel for years, has a feature story looking at how Nortel’s senior executives have done extremely well over the past eight years as the company’s value and business has eroded.

He writes that “From 1999 to 2008, the five best-paid executives — including the CEOs — pulled down $400 million as their company hurtled toward bankruptcy protection”, and how that every recent CEO – with the exception of Bill Owens – have qualified for six-figure annual pensions.

Now, you can understand why Nortel’s rank and file are so pissed off about having their severance and pension plans cut off at the knees.

‘

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  • less

    Yeah, I remember those log lists of NT patents on public display by the main food court. Your name there is reward enough.

  • less

    This suggests that Proto's Death to Nortel any day now bubble is burst. His dreams of immediate receivership and Chapter-7 are clearly not in the cards between now and May 2, 2009.

    This means AAN will be forced into its own Chapter 11. Bwahahaha.

  • RealityStrikes

    Even more depressing is how the “I Believe” crowd were posting on an internal blog about how to save a few bucks here and there while money was being flushed down the toilet by z-man (to be fair, I doubt all posters trying to save $2 were from the “I Believe” cult, but most probably were).

    Of course, the z-man cult will respond by saying “but there are many more of us, than of him, and we believe we can make a difference.” Yes, yes… but not for much longer.

  • less

    Lets do the Math: Nortel snags 18 (9x2) new customers, you only 2 (/2=4). Believe the Math.

  • Theleftbehind

    Correct

  • Purpletip

    Don't understand what you are objecting to? Disagree that notice means you are on the list or disagree that you should file a claim?

  • Purpletip

    List has retirees as well as current employees and vendors. It represents the creditors Nortel believed it owed which included employees at the time of filing. You need to file a claim for any monies owed.

  • broadbandbill

    Graucho Marx’ “One for all and all for me” humorously (and correctly) describes Z’s and most of today’s arrogant ‘we-know-better-than-you’ corporate culture that has brought the world’s economies down to their knees. Time to get rid of that 80s ‘ME mentality’ once and for all…–bb

  • Purpletip

    Some names will appear twice if Nortel owed monies in two categories; ie pension and severance. Confusion still exists however whether you should file one consolidated claim for all monies or individual claims for monies owed in each category. I've been told by the Epiq folks to file a claim for each category; however, BR experts have told me to file one claim for entire amounts owed. I will post definitive answer once I get one.

  • broadbandbill

    Less,

    Forget what I said about you using good logic; I was wrong…–bb

  • less

    We appreciate (even as we depreciate)!

  • Purpletip

    Forgot to mention that there is no requirement to notify creditors owed less than $5K. And, I personally know several folks who are owned money that were not on the original lists. The lists are evolving – spread the word to others to file a claim if they are owed any money. Also, watch the Epiq site for deadline to file claims.

  • Nortel watcher

    Yeap, even the former CALA presidents Dion Joannou and Martha Bejar are on the list…and they left NT a couple of years ago.

  • less

    Wha – ?

    When crunching Nortel's numbers is only fair to apply Nortel Math.

  • less

    Now this does make me curious. I'm missing the names of a few near-lifers most definitely worth more than $5k.
    I'd just assumed they'd be on the first draft whilst the newbie lists might be in transit somewhere through the archives, or vice versa.

    We'll see.

  • broadbandbill

    OK, I get it now…–bb

  • Nortel watcher

    math aside, I find it ridiculous for Nortel to send anyone from the CALA office to Barcelona . NT.com shows offices in Spain and Portugal; therefore, their staff have the language proficiency to engage customers from Latin America at this show and forward any leads back to CALA. And why does NT need two booths at the show after having sold the UMTS business to Alcatel two years ago?
    I can just picture the spouses coming along on this trip too.
    Hey, why have some tapas with a customer when you can have them with your spouse on the company's dime (few left it seems)?

  • scalpcutter

    Agreed.
    The Green Campaigns at various campuses are enough to make one puke, if not at least put the boots to the easel or whiteboards in that carry this fluff, or better yet the people who wrote it.
    The I believers must sneak in at 3am with a magic marker and flashlights telling the common worker to turn off their computer and use two sides of the paper while thr company execs get 400 million plus and money is indeed flushed down the turlet.
    Clarence Chandelier head.

  • scalpcutter

    That is correct.

  • less

    I wouldn't be surprised if Nortel held a press conference tmw – after church, natch – and floated some vague ideas about a possible UMTS buyback “in two to three months, if all we hold together and move forward” for about two hours, then whipped out a WiMAX slideshow.

  • less

    Heres a pic of me, I'm the one in the middle ; )

    http://blogs.nypost.com/popwrap/photos/Statler_…

  • broadbandbill

    Yup, just what I pictured…–bb

  • AcrimoniousAl

    It would be interesting to see how many angry creditors Room 2112 can accommodate.

    Docket # 207

    “DATE, TIME AND LOCATION OF MEETING OF CREDITORS. A meeting of the
    Debtors' creditors shall be conducted on February 19, 2009 at 2:00 pm (Prevailing Eastern Time) at
    J. Caleb Boggs Federal Building – 844 King Street, 2nd Floor, room 2112, Wilmington, DE 19801″

    “Attendance by creditors at the meeting is welcomed, but not required.”

    <small>By the way, I like the room number 2112 :) </small>

  • French_Connection

    Refrence docket 245;
    I question the sense of publishing employees home addresses (including the execs!) in the light of the amount of identity fraud in the world.
    You don't even need to register to get access to that site!!
    Is this normal in the US as I think it is forbidden in Europe?

  • Anonymous

    I’ll be updating my Christmas card list based on these addresses.

    Note that Hackney’s name and address are listed here, but Zman’s is not. Why would that be? Does being omitted as a named creditor allow for additional rights or is he scared of letting his home address become public?

  • less

    I believe bankruptcy itself is forbidden in Europe, and that their “social net” virtually guarantees financial safety, free and unviersal health care, education, etc. from cradle to grave That, and in overseas gun ownership is overwhelmingly frowned upon as “uncultured” – Wild West America John Dirty Harry Wayne.
    I can't imagine yer ordinary Euro foresaking dissent, dialog and mediation for violence of any kind.
    Over there, I'd go ring Mike Z's (solar-powered) doorbell and he'd invite me in, offer me his house slippers (a courteous ritual he'd adopted after visiting Japan), tap the gong (made in China) that summons the chef (Mexican) who offers a decent cup (earthen) of tea (Darjeeling), a (glass) bottle of real beer (German), and maybe even some homemade pasta (Italian).

    And lo! deep thought and poetry bursts forth in a meaningful cultural exchange. Before I know he's showing me pics of his spiritual retreats to Ibiza and Mallorca (Spain) with classical music (Mozart) playing softly in the background.
    Using the restroom (Ruskeala marble, Corinthian columns I notice the amphor (Egyptian) containing water (filtered, pH neutral) that guests (Arabs) may use to clean their nether regions instead of toilet paper (100% recycled).

  • less

    The (hyperconnected) world is Mike Zs home.

  • less

    I hereby BELIEVE that Nortel will be the company that provides creditors with the necessary bandwidth when, not if, Cisco (Roman empire) goes bellyup.

    Feb. 08. 2009
    Cisco expects 1,500 to 2,000 of its 67,000 staffers to be similarly dis-employed in this manner in the months ahead.

  • less

    We can all meet here after the scalding

    http://www.bowlnortel.com/news.html

  • ntgo11

    Is this normall thing for CEO use company jet for the privte matter? Is this included in their contract?Otherwise he should be sued for doing that. Anyone has insight?

  • NortelGal

    Disagree that “receipt of this notice means you are definitely ON the list”. Unless everyone (currently working for Nortel) is on the list, everyone received this letter, from what I have heard.

  • broadbandbill

    He's Macedonian, the marbel would come from Prilep…–bb

  • less

    I see an alpha male, a natural leader, a hunter whose eyes are fixed torward the goals it pursues.

  • less

    He didn't want to (again) be accused of cronyism and xenophobia for choosing “homegrown” material and labor, so he reached out and embraced diversity.

  • Purpletip

    I am 100% certain that receipt of Notice means you are ON the list.. At the time of BR filing ALL employees were unsecured creditors because Nortel owed pay plus benefits. Contact Brian at Epiq if you have further questions or know of additonal people who should be notified.

  • NortelGal

    Ok, perhaps I misunderstood you. I took you to mean that being “on the list” meant “to be laid off in the short-term”. That is what I disagreed with, since all employees (at least in the US) are on the list of creditors but not necessarily on “the list” to be laid off. Since Nortel is still paying our salaries and benefits, I don't understand the need to file a claim, though. Perhaps you could explain that. I can fully understand those who were laid off last year, received a severance contract, and then were cut off filing a claim. But not current employees. Please explain, thanks. Most of us are very knew to Chapter 11 and all its ramifications.

  • less

    So Brians gotta field 36k phone calls telling each caller exactly how much they're gonna lose?

  • broadbandbill

    u funny…–bb

  • Nortel_honey

    lol…i see a man with a tiny package who constantly has to bully people to make up for his incredible lack of size in that department….

  • NT_DFW

    To clarify, around the Richardson campus, “The List” has always referred to being on the list to get laid off. Sounds like everyone got on as we are all creditors or potential creditors.

  • broadbandbill

    That's real wisdom and experience talking :) . They are so easy to read, almost not fair…–bb

  • NortelTragedy

    Did I read that Mike Z's son started working for McKinsey in 2006? Is this true? What about ETHICS? Doesn't that seem odd, Nortel spening millions with McKinsey for “Business Transformation” (definition: 1) Nortel what they already knew; 2) a) listening to employees, b) sending the ideas to India overnight, c) receiving the ideas back in PowerPoint overnight for presentation back to Nortel.

    If Mike Z's son landing a job at McKinsey in 2006 (during $M in BT consulting spend) is not an ethical violation, I'm not sure what is.

  • broadbandbill

    To be fair, we don’t know enough about his son’s employment there to start jumping to conclusions. It may have been a summer internship program, which usually does not pay all that well. I am certain there are many other instances where Z’s lack of ethical integrity is a lot more evident…–bb

  • less

    You must be an engineer upholding them ancient COCOS standards.
    The grunts much more collloquially referred to The List as “the dead pool”, “walking the blue mile”,”put on the slab”, “dead man walking”.

  • ERworker

    That's generally what “The List” means at RTP also. You usually don't want your name on it. Well…maybe at one time when we got our severances you might have. But “the list” in Docket #245 of creditors contains 33,636 names (see the very last page).

  • Purpletip

    You maybe correct. LOL

  • NTengineer

    Thanks, that made me laugh!

  • Purpletip

    Nortel had to get permission from the court to continue to pay salaries and benefits. Check the Epiq site under Docket for motions granted around Jan 15. Since that approval has been granted, you are correct, many current employees are no longer creditors and will not need to file a claim. I'm not aware of a public list with names of folks to be laid off. Further I don't t believe Nortel would need to file a “to be laid off” list with the BR court.

  • Theleftbehind

    It was part of his agreement to join nortel. It us part of his compensation.

  • Theleftbehind

    Still works there. Mike is close friend of Julian, the head if telecom practice at McKinsey, and the one that lead the BTransfirmation initiative. They always get together on weekends when mike is in Chicago.

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