No AGM for You!

By Mark Evans | Published: February 9, 2009

If you were hoping to grill Nortel senior executive at the annual shareholders meeting later this year, you can probably forget about it.

In a monitor’s report issued by Ernst & Young on February 5, Nortel is requesting court approval to not hold an AGM.

“The annual meeting would be a distraction to both management and other company resources at a when they are required to be focused on stabilizing and restructuring the business for the benefit of all stakeholders. In additional, there are significant costs associated with holding an annual meeting, including additional costs for mailing, premises/technical support, transportation/accommodation and security.”

Aside from the costs and time involved, there is no doubt Nortel and its senior executives are hoping to avoid a shareholder protest and interrogation given what’s transpired recently. In 2004, Nortel’s AGM in Halifax was a raucous, five-hour affair that saw CEO Frank Dunn and chairman Red Wilson repeatedly grilled.

Another juicy tidbit within the Monitor’s report is that Nortel is walking away from two corporate jet leases that will save it $1-million/month.

Here’s the latest Monitor’s Report: monitors-report-feb-5

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  • less
    ... the company enjoyed big improvements in operating profits during 2008.

    “We’re talking about a big number in the $50-million range. I decided not to take any bonuses for anybody for 2008.”

    That is one big-ass number.

    Shoudn't "We're talking... I decided" read "I'm talking... we decided" ?
  • broadbandbill
    Say/Do ratio is N/0...--bb
  • horace_grimswold
    And the Certified Asshole ratio is 100% (see www.bobsutton.net)

    More proof:
    http://www.ottawacitizen.com/Nortel+chief+take/...
  • Listen to the poor whiner whine. "Oh, but my seven-figure salary hasn't increased at all in the past few years like my buddies on Wall Street, and they also ran their companies into Ch. 11!"

    Give me a break. And yet people think a few youtube videos are offensive. What this guy does and continues to do, and then defends is way more offensive.

    If you thought the videos were just a piece of hilarious fiction, guess again, turns out reality is more absurd than anything anyone could imagine:

    "Yes, let's start pampering the BoD with pure cold cash since NT stock is now worthless. Have to keep the BoD happy so I have free reign!"

    Just pathetic.
  • RealityStrikes
    Exactly..... what a tragedy.
  • nortelgirl
    it's not actually THAT surprising - MikeZ and his execs have not had any open dialogue with their employees since the filing (and for a long time before that, come to think of it), and now they're giving the same treatment to their shareholders.
  • protospherical1
    At under a penny presplit I hardly think voting on bonuses would be appropriate this time.

    Imagine answering questions on the 3 to 5 year plan, changing options to cash again, how the reverse split was to draw institutions, 20 dollar buying opportunities, Hackney's added responsibilities, employee severances or further layoffs, unable to sell any more assets, delisting, their suppliers agreements, how long they have before further decreasing or eliminating existing shares altogether, etc... endless... No wonder they hide and run.

    They may not have to answer a thing in 90 days anyways.

    I thought the security costs were humorous. A days to answer to shareholders almost 100% later is probably a lot cheaper than running the corporate jet for a month, so add costs as being yet another lie and doing what ever they want.
  • horace_grimswold
    Fiduciary responsibility to the shareholders? What, me, worry? --Alfred E. Zafirovski
  • Not surprising, they can't stand the heat of actual questions and most of the "Q&A sessions" are just some staged event to perpetuate some myth that management is loved for the decisions that they make.

    This new video shows the truth of the matter: http://www.youtube.com/watch?v=3EqQrpep7aE
    (Thanks to a reader for the idea)
  • NortelTragedy
    And I was hoping to pick up a few pair of new shoes! Well, used, but new to me.

    They have no spine. What could they say that would be insightful, meaingful or worthwhile of one's time, anyway? I'd prefer they simply go away and let real leadership take helm, even though it does appear the keel has broken in half.
  • Got_Out
    Given the leadership that has been shown by Mike Z and his cabinet, this isnt surprising. They wont stand and face their own people in a controlled forum like a webcast, so why would they face shareholders (incl employees) in an environment where the press, analysts, etc are present? When all the decision makers are in self protection/self preservation mode (Mike Z, his cabinet and the BoD) why would they stand up and be counted like real leaders?
  • They have already flipped the bird at shareholders by telling everyone bankruptcy "was not imminent" and then almost immediately turning around and proving themselves to be liars!

    So they don't need an AGM to let their feelings be known.
  • ERworker
    Or to have to answer for their continual lies.
  • 1derY
    The questions at the Webcasts are staged and controlled by the PR folks...they are pathetic, butt kissing types. Even then, Z typicallly mumbled his answers and you can barely understand what he said....

    I don't know how this man got the job in the first place. That brings us to the incompetence of the BoD - two politicians, a bunch of number cookers, and a couple of PhDs.
  • broadbandbill
    cowards pretending otherwise...--bb
  • less
    "We've got more important things to do than argue with a bunch of peasant ingrates waving pitchforks and breaking things."

    Management is describing exactly what was required of them all these years - budgeting money, concentrating on getting the job done....
  • LonelyOpsGuy
    Two jets???????
  • Of course, need one for backup just in case the first one is undergoing maintenance. Can't have the CEO being late for a golf tournament!
  • less
    Its only fair. To communicate, people need two phones, right? Transmit - receive, right? Tip and ring. One jet flies left to right, the other right to left. Give and take. Case closed.
  • broadbandbill
    strategically aligned, ying yang…--bb
  • LonelyOpsGuy
    I love this blog....
  • broadbandbill
    If only Z and his GEngsters knew just how much insight there is on this blog they would be in the mess they are in…--bb
  • Got_Out
    Hackney had been making use of the second one.
  • Casual_Observer
    Roese was using the second jet until he was booted last year. Guess it must have gone to Hackney after that. My guess is there was some kind of power struggle in senior management between two sides. One side headed by Mike Z/Joel/Reidel and the others (Roese/Flaherty etc). Roese was being elevated publicly by Z last year but at some point Hackney must have elbowed him aside. Given the shared GE pedigree with Mike, Roese and anyone without a GE pedigree never stood a chance.
  • RealityStrikes
    A lot of, ummmm...., creative thought here. The truth is not as interesting....

    According to the news article below, "The second plane was effectively grounded in 2007, although Nortel continued to hold the lease for the jet and charted it out to third-party users."

    http://www.thestar.com/Business/article/584709
  • LonelyOpsGuy
    RealityStrikes:

    The truth is...while there was money being spent on something absolutely useless, I was getting hammered by taking cell phones away from field staff due to "across the board cost savings" senseless initiatives.

    For the Customer, Nortel was the joke because "all other vendors can communicate, why you guys cannot?"

    Get real.
  • LonelyOpsGuy
    "Charted it out to 3rd party users". Internal users? Why it wasn't returned back in 2007? Part of Nortel core business?
  • Got_Out
    The second jet was used by Joel (in his previous Opns role). Cant say for certain on 2008, but it was used at least for the 2nd half of 07
  • broadbandbill
    Roese never stood a chance because he was a useless idiot hired by another useless idiot. Two of the worst hires in Nortel history...--bb
  • broadbandbill
    One for domestic and the other for international travel, I'm sure...--bb
  • McBeese
    One for MZ and one for everyone else, I bet.
  • Cataractus
    I suspect that this was at least partially (or entirely) done out of self interest to prevent a forum where outraged shareholders could join together to oust the BOD and the executive leadership team or demand a big cut in pay or some combination of the two.
  • broadbandbill
    They are just preventing a riot....--bb
  • McBeese
    They are worried about my aerodynamic shoes.
  • Air-Z. Specifically designed by Nike to head towards the CEO's head.
  • exnt2
    on second thoughts why does he not use Roeses brainchild web.alive. he can choose a chimp for an avatar.
  • exnt2
    does Z fly coach now in the toilet or first class.
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