No Pay Cut for Mike Z.

Here is an article that Zman needs to read. Good to see that some real leaders believe in pay for performance.

http://www.ajc.com/metro/content/business/stories/2009/02/23/aflac_ceo_bonus.html

If it is the case the Mike Z is going to speak to the Ottawa employees later this month then I hope that they have the courage to show him what they really think of him - whilst shoe throwing might be over the top and little gentle booing or even walking out early from the meeting might be a big hint to him!!!
Perhaps those of us who remain could start emailing him a few virtual shoes in response to the awful z-mails that keep hitting our in boxes!! My loyalty is now only to my colleagues who remain and the extra hours and work that I am putting in are to try and secure some type of future for as many of them as possible - but no doubt a lot of what I do will just pay for the huge retention bonuses for Mike and his cronies. Enough to make you weep! Heads they win and tails we lose.

Inflation of the Mike S. Zafirovski Sports and Recreation Center dome!

http://www.youtube.com/watch?v=Pu1Ps0LYmM4

lol!

You would think that since the size of the company is so much smaller today than it was when Mike Z assumed command that his pay would be downsized accordingly. Maybe a better question would be just how much smaller does the company have become before Mike Z's salary is downsized or the CEO position is offshored for a whole lot less $.

What will end up happening, and this is assuming Nortel and Z survive (a HUGE assumption), is that Z and his cronies will end up with big fat raises for all their hard work while those of us that survive will be lucky we get anything (and be told by Z just how lucky we are - Now get back to work!).

95% of you people are disgruntled idiots with nothing better to do with your lives than grind axes and obsess over things you cant control. if this is a sample of the quality of nortel engineers, then it's not surprising the company is BK.

If Nortel's engineers were as bad as you are implying then NT would have filed for BK long ago. Why now? Only one answer: GROSS MISSMANAGEMENT!!!!!

Yo Joel, stating facts is not the same as grinding axes…---bb

stating facts?? 'normal people' do it once or twice, not obsessively on every new thread. I stumbled on this link and read most of the comments over the past few weeks. there is precious little in the way of "facts" and mostly undiluted bile from losers.

"Spewed" is the word the Winners prefer.

Google hits: 8,160,000 for bush spews

Thanks for visiting us Joel but be advised that some of us DO hit back.

Need to take a closer look to better understand who made them ‘losers’. When gross incompetence combined with management IMPOTANCE causes both financial and employment loses the visceral reaction against those that caused it is only a natural response. It beats battery and assault.

And speaking of obsessive, why are you reading this blog that your ‘stumbled upon during the past few weeks’; shouldn’t you have stopped after reading one or two of its ‘obsessive’ postings. Sounds as if you have an issue with obsessiveness yourself. Takes one to know one, they say.

Lastly, what is there to be Skeptical about? Those losers in management have lost more than they can ever repair, CH11 or not. Z singlehandedly “De-Created a Great Company”. Only blind idiots could be skeptical to the facts…--bb

I'm game to try Deep Thought: Global warming is real. Impeach Bushitler. The fourth shot came from the grassy knoll, courtesy of the Secret Society's oil cabal.

Better?

Hey I noticed the temperature fell .3 degrees outside after I posted that.

Google hits:

15,400,000 for "nortel"

81,300 for "impeach bushitler"
410,000 for "grassy knoll"
1,950,000 for "oil cabal"
25,100,000 for "secret society"
58,900,000 for "global warming"


oh and lest I forget the most smartest

694,000,000 for US 52 states

-When did the usa change from 52 stated to 50 states
-What are the names of the 52 states of america. please?
-Were there 52 states?
-Map of 52 States in USA
-According to this press release, America has 52 states
-every coworker I asked responded that the U.S. has 52 states

afghanistan is 51st and iraq the 52nd.

you are an A**hole skeptic

and you're unemployable. good luck with that..bwaahaa

and full of Zschitt, skeptic

BWAHAHAHA! This is priceless:

http://www.newsobserver.com/104/story/448348.html

Jun. 08, 2006

Joel Hackney had a hand in shaping the future of Nortel Networks even before he agreed to take the top job at the multinational company's third-largest site, in Research Triangle Park

"The new leadership is designed to remove the taint of past management, a taint that remains with the company still," said analyst Jim Kelleher of Argus Research, a financial research firm, in a recent report to investors. Nortel "is more at risk of ceding further market share than in position to gain share, and it has yet to demonstrate it can operate effectively in the brand new world of cutthroat pricing and ephemeral customer loyalties."

To counter such concerns, both Hackney and Zafirovski, disciples of legendary GE boss Jack Welch, want to imprint GE's unremitting management philosophy on Nortel's corporate culture.

Taking a cue from Welch, Zafirovski has declared that Nortel will focus on lines of business where it is first or second in market share. The company is applying a statistical methodology institutionalized at GE to reduce the likelihood of product defects. Nortel is reviewing internal procurement processes in an attempt to save millions of dollars on contracts with vendors and manufacturers. And it wants to expand into providing more networking management services -- RTP is home to one of Nortel's three global networking operations centers -- instead of just selling networking hardware.

Hackney said he left GE because he wanted the opportunity to work with Zafirovski again and to play a role in restoring Nortel's reputation. The downside, as he saw it, was that analysts and investors would demand instant results, whereas he and Zafirovski realized the recovery would take three to five years.

Still, Hackney does not show a hint of doubt about his move.

"If you look at my life, it's as if it was being built for this [Nortel] job," he said. "My story is not unique in the sense if you look at the recent additions to Mike Z's cabinet. We all left great careers and huge opportunities to come here."

Lost in translation --- Reads: “Hackney was one of his first recruits.”

Should read: ‘Hackney was one of his first and biggest mistakes…’ Z is THE WORST talent scout I have ever encountered…--bb

However, in parallel to the ongoing work in the businesses, there is still much that is in flux as we advance the restructuring process. What I do know for sure is this: Nortel is going to change significantly in many ways. We are going to get smaller[ and smaller and smaller...]. And that will impact people [but not me]. But, we are also going to get leaner, more agile and more responsive. We must create a cost structure that is aligned with our revenue base [which is continuing to erode because neither I nor the people I've hired not the dinosaurs I decided to keep have no clue how to grow it] and our investment plans for the future. As we discuss and review with our creditors, we will know more, and tell you more.

So, what's next? First, we need to continue to stabilize our business and our customer base [by prematurely declaring bankruptcy]. Second, we will be ramping up the planning phase as the creditors' committees come together and we look to develop the go-forward plan for the company. Throughout this, we will be continuing to focus on reducing costs across the business, as virtually every company in the world in virtually every industry is doing today [and besides, it's all I know how to do]. All of these measures together will lay a path for the future that is sustainable and affordable.

Looks like they gave at the office:

http://www.campaignmoney.com/political/committees/nortel-political-action-committee.asp?cycle=08

Top 100 Donations/Contributions in the '08 Election Cycle to
NORTEL POLITICAL ACTION COMMITTEE

Name/Location Employer/Occ. Contribution $ Amount Primary/General Date

Hackney, Joel Durham, NC 27709 Nortel/Executive $5,000 P 12/05/2007
Zafirovski, Mike Schaumburg, IL 60173 Nortel/Ceo $5,000 P 11/26/2007
Lasalle, William Barrie, On Canada, ZZ Nortel/Counsel $1,500 P 11/26/2007

http://disqus.com/people/Theleftbehind/#main
From: Mike Zafirovski, CEO (TORWM:8442)
Sent: Friday, February 06, 2009 4:51 PM
To: Nortel employees
Subject: Message to Employees
..cut
However, in parallel to the ongoing work in the businesses, there is still much that is in flux as we advance the restructuring process. What I do know for sure is this: Nortel is going to change significantly in many ways. We are going to get smaller. And that will impact people. But, we are also going to get leaner, more agile and more responsive. We must create a cost structure that is aligned with our revenue base and our investment plans for the future. As we discuss and review with our creditors, we will know more, and tell you more.

So, what's next? First, we need to continue to stabilize our business and our customer base. Second, we will be ramping up the planning phase as the creditors' committees come together and we look to develop the go-forward plan for the company. Throughout this, we will be continuing to focus on reducing costs across the business, as virtually every company in the world in virtually every industry is doing today. All of these measures together will lay a path for the future that is sustainable and affordable.

Yes, we will be transforming Nortel again – more decisively than probably at any time in recent history. We are doing this in a tough environment, in a tough marketplace, and – hardest of all – with tough impacts to Nortel employees.

We must do this to ensure we are able to continue serving our customers so that they can make it through these times. We must also move forward in a way that will preserve our innovation, our know-how and the capability that is in our people. This will be challenging.
cut
Mike
cut
===================
reply to Theleftbehind

Let me tell what it means
Mike hinted it'd be New Small Nortel after all.
How new can NSN be or how small?
Where Nortel will house 6000 R&D employees from the sold campus in Ottawa?
Not sold yet?
Nortel is not going to house all 6000?
OK
How many of them will be saved? 2000 or less?

Mike plays his game of holding all parties hostage.
He’d cut 60 to 75% workforce but as long as there is no leak; every employee has to play his game too, pretending they Believe! Will Nortel fire rightful critics and keep Believers and Optimists who think Nortel is a leader in the market and all critics are the cause of Nortel's troubles?

Mike is focused to stabilize customer base. How?
It's been more than 2 months since Nortel hired BK experts to make plans and customers have been watching that horror movie. What sales people would sell in that time? Few BCM450 for few thousand $ each? What was Mike's message for customers in his zMail? The message was, stay tuned because you can be the lucky one to be served next year as 60-70% others would have to replace Nortel's gears sooner or later.
The most disgusting is that the guy who failed miserably to fix anything is still torturing all parties with his zMails!
Give it up Mike!
$1 mill doll a month for jets vs $200 k a year for all innovations; that alone shows how greedy and blind you have been!
You were spending 60 times more for jets than for innovation; that’s the simple calculation.
How did you expect to spark innovation in your company?

Zschitt continues......my condolences to those who still must contend with him

Best line from the article:

"We were in a perfect storm and we were not on strong footings to begin with," he said."

translation:

<whine on=""> "It's not my fault. Why do you guys hate me so much? I didn't do anything wrong. It's really not my fault!!!!" </whine>

No raise in 3 years?!? If you check the filings for 2007 he got a raise (30 or 40%) then.

It just keeps getting more and more depressing!

This is probably the most ridiculous thing I have ever read.

'Sorry Mrs. Hossenfeffer, you're husband died in the operation but look at the great job I did suturing... I won't be asking for a tip!'

Ummm $50 million is 'big number' for a $10 billion/year company!? Dude you do have a math degree, does 'statistically insignificant' ring a bell? And dude, you already took $37 million of it.

I remember reading an early interview (can't remember the link sorry) where he said he did not believe in the CEO/COO model. I now understand why. MikeZ does not understand the difference between the jobs (other than the much larger paycheck).

If you are CEO of a company where 1/2 revenue and 200% of the profits are about to evaporate, you do not spend the bulk of your time eking out a .5 percent increase in a 'non-GAAP' (aka bogus) accounting measure. Hiring somebody two levels below you to do so might be warranted.

Had Nortel had a CEO with the slightest understanding of the telecom business, 50 million would come from 1 half-way successful new product. This would also grow the business, reducing lay-off expenses, etc.

Glad to get this off my chest, thanks Mark for this forum.

There is a key point in all of this. I am firmly convinced Mike Z would make a great COO. He is operationally focused, has a passion for process and metrics (ie LSS) and gets the management of cost structure (other than the jet).

However, he is in the CEO job. The CEO job requires much more - a focus on vision, the strategies to focus the vision and creating both the organization and culture that make it happen and allow the company to be successful. On all these points, he has been weighed and judged to be lacking.

Much as everyone has a hate on for Roth, John's strengths together with Mikes would have given the company a fighting chance (would still need help on communications and people!). What is in place now is a CEO who is really a COO. With the team left around him, there isnt anyone picking up the slack or void.

Sadly, doesnt leave me with high confidence the restructuring plan will be the salvation, but I guess we'll all have to wait and see.

Mike Z doesn't understand the difference between CEO and COO yet he employs a COO anyway? Sigh.

Just my observation. He is fixated on trivial 'tactical' operating metrics without any apparent understanding of anything 'strategic'.

Part of doing any job is 'getting it'. When people get promoted to a job the don't 'get', they keep doing their old job and ignore all other aspects of their new one (e.g. the 1st level manager who spends the bulk of his/her writing code).

While it is undoubtedly true that Nortel is not the most operational effective company on the planet, being so would make no real difference.

Operational effectiveness was important in his old job making cell phones. A key point is getting billions of components to the right places at the right time to create 10 millions of phones. Cutting a penny or two can make a huge difference. Cutting a penny or two from a few thousand Passports is utterly irrelevant (and kinda silly given that the bulk of the supply chain activity has been outsourced anyway).

Different types of business require different focus. A 'one true' way to run any business in any circumstance is snake oil. It is surreal and telling that he actually believes he's done a good job. Even if Nortel wasn't in bankruptcy protection, that he believes a .5% improvement in operations is his major accomplishment for a CEO should give any competent board pause.

Note also that Nortel doesn't currently have a COO. It does have a 'Executive Vice President, Corporate Operations' but this is head of various operational aspects of the corporation (supply chain management, real estate etc).

Brilliant post. Right on target.

Nice choice for a user name. May also want to check rfc 3092 as a good name for this forum.

Thanks - 3251 would seem to fit nicely with Nortel's green initiatives as well:)

My comment on 'Fake Mike Z' (I just love the concept)...--bb

"Dear Mike,

Thank you, thank you and thank you one more time. Until your corporate brilliance showed up I was the poster boy for the proverbial ‘corporate empty suit’. Imagine that; I paved the way for (the real) Steve Job’s glorious comeback and I am the BAD guy? Ungrateful SOBs, all of them. Anyway, please don’t do business with that cancer-laden hippie; your cancer is all we need.

Continued success,

John Scully"

Link to post:

http://fakemikez.blogspot.com/2009/02/im-leading-theyre-behind-me.html?showComment=1234413900000#c5717713486459791598

For f's sake, why doesn't MZ go? As a CEO, he has failed and destroyed Nortel. He has nothing up his sleeve to turn things around. As part of his failure, he has betrayed the Nortel employee base, present and past. Trust and loyalty are gone. Mike Z is hated by everyone and respected by nobody. Why does he stay???!!!!

MIKE Z - GET OUTTA DODGE!!!!!

Cause he's the 'Fake Mike Z"; don't you get it?--bb

I guess not. I just can't get over how much damage the guy has done and is doing.

Agree, was only jausting...--bb

With my profuse apologies to the Beatles for associating their fine song to Z.

He's a real Zero man
Sitting in his Zero land
Making all his Zero plans for Nortel

Doesn't have a working plan
knows not where he's going to
Doesn't care about you and me
Zero man please listen
You don't know what you're doing
Zero man, Nortel is at your command

He's as blind as he can be
Just sees what he wants to see
Zero man, can you see me at all
Zero man, better worry
Out of time, please hurry
Keep hiding till somebody else
Shows you the way
Ah, la, la, la, la

Doesn't have a working plan
knows not where he's going to
Doesn't care about you and me
Zero man please listen
You don't know what you're doing
Zero man, Nortel is at your command
Ah, la, la, la, la

He's a real Zero man
Sitting in his Zero land
Making all his Zero plans for Nortel
Making all his Zero plans for Nortel
Making all his Zero plans for Nortel

Brilliant and spot on; wish I had thought of it…--bb

Here's one more:

"Z-man" (To the tune of Taxman)

Let me tell you
How it will be.
There's none for you,
1.2 million for me

'Cause I'm the Z-man.
Yeah, I'm the Z-man.

Should 2 weeks notice
Appear too small,
Be thankful I don't
Remove it all.

'Cause I'm the Z-man
Yeah, I'm the Z-man.

If you have severance
Say goodbye to it.
If you have a pension,
You'll take a hit.
If we own you money,
Too bad for you.
If you're a shareholder,
Well screw you too.

Z-man!

'Cause I'm the Z-man.
Yeah, I'm the Z-man.

Don't ask me what I want it for,
(Uh-uh, Nortel!)
If you don't want to lose some more!
(Uh-uh, Nortel!)

'Cause I'm the Z-man.
Yeah, I'm the Z-man.

Now my advice for those let go,
(Z-man!)
Sorry you have nothing to show!
(Z-man!)

'Cause I'm the Z-man.
Yeah, I'm the Z-man,
And you're working for no one but me.
(Z-man!)

In the Nortel press release on the 14 january........

Nortel President and CEO Mike Zafirovski. "These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be. I am confident that the actions we're announcing today will be the fastest, most effective means to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success.

His email of the 6 Feb posted below he now says.....

"I know many of you also have questions around when we will have a finalized overall plan for review by our creditors and the courts. This is a simple question that does not have an easy answer. At this point in time it is extremely difficult to put any timelines around when the plan will be ready for review and then implementation. There are many variables and interdependencies that are still unclear at this point."

Mike Z has learned from the best - Jack Welch:

http://fakemikez.blogspot.com/

I'm pretty sure this is what Zeroman is actually thinking when he is writing those weekly Zmails

http://fakemikez.blogspot.com/

You meant he has his monkey Alepian writing these Zmails for him...Do you really think Z is capable of writing letter like that ?

By the way, how many PR people do they have working on spinning out letters and fronting the media lately - Karen M, Big Mo. Mooka, Ronald Alpean, Jay Barta ????....and a few others perhaps. I'm sure these guys don't come cheap...

What a waste of time..should lay them off before the engineers.

Found the source of the ZMails:

http://www.erikandanna.com/Humor/bullshit_generator.htm

Alepian has probably been let go. He had to be sacrificed for making the comment that "bankruptcy was not imminent" back in December. For this reason, I almost feel sorry for him, being manipulated and told to spread lies for the benefit of management.

A video has since emerged of how Nortel management handled the leak to the Wall Street Journal about their bankruptcy plans back in December:
http://www.youtube.com/watch?v=1b0-r1t-H1M

I think they should all go fix Peanut Corp of Am.

Real leaders show up when trouble appears and stay there until it is gone. The cowards, they go into hiding behind emails, teleconferences and anything that is even remotely considered 'trouble-facing' because deep down inside they know they are COWARDS!!!

Couldn't have said it any better. Cowards, liars and thugs, the lot of them. Their failures and mistakes were bad enough but yet they still have the gall to hide and shirk any shred of responsibility that comes their way.

"...he and other executives would not be paid cash bonuses for 2008."

Note how carefully he qualified that statement: no cash bonuses this spring for 2008 work. That does not preclude cash bonuses paid this spring as part of the court approved KEIP, about which nothing has been said to employees.

So don't worry about Mr Z having to get by on only 20% of his normal pay package (i.e. just those $50,000 paychecks bi-weekly), because millions have been set aside for the KEIP, and that will surely make up for the lack of 2008 exec bonuses, especially since the KEIP pot doesn't have to be shared with any employees the way those performance-based 2008 bonuses he cancelled would have been...

I'd like to see KEIP replaced with CHOP.... CEO Headed Off to Prison.

Right you are my friend. They have tried to keep KEIP and AIP under the radar all while requesting that the court approve it.

So, while Zmails harp on about "no bonuses" what they fail to mention (by design) is that KEIP will "keep" all the executives nicely pampered as they always have been, while they continue the relentless drive towards Ch. 7

Criminals by any other name!

Let's make believe for an instance that I was CEO.

First, I would understand that I have a huge undertaking with the Chpt. 11 and restructuring on my desk. However, I would find it EXTREMELY necesary to speak to my remaining shareholders, customers, and most importantly, my employees, past and present, and try to comfort them and let them know everything.

Secondly, I would take the symbolic pay cut, no questions asked.

And lastly, I would start from square one, taking away all the unecessary fluff that has been attributed to my past (Six Smegma, Black Belts, and anything perceived as related to a BB project) and allow the remaining employees to do their jobs simply stated. No added reports, charts, fluff, or other data related BB crap. Bottom line, the employee, the customer, are all that matter. Direction from my team would start at the AGM, beginning with a succinct and direct roadmap for restructure and how it would affect each of us!

Sadly, this won't , can't and never will come true for all obvious reasons previously state on this blog.

BOD's need to wake up, walk away and give this company back to the ones who truelly care about it, the remaining core employees. (not to include the recently added staff in COe's due to their being responsible, not personally but rather due to their creation, for the current situation).

The reason why Zeroman does not speak and does not take the paycut is because Nortel's fate is chapter 7. So, why care?

You would because you have a conscience, Z doesn’t!..--bb

any I Believe folks who would like to offer a 30% pay cut to put nortel back on track. if you believe how about defer this until nortel is the profitable company it never was again.

I would take a pay cut (e.g. work a shorter week) in a heartbeat to save the jobs of my co-workers, as long as there was some assurance that the money wouldn't just go into some exec's pocket on his/her way out the door.

At this point there's a trust issue involved: can we believe a word our "leaders" say anymore. While doubt remains, that makes it hard to commit fully and offer up our own pay to keep things afloat without any reciprocation (e.g. the execs would have to share the pain as well with $1 symbolic salaries), even if we do believe with all our heart & soul that Nortel can and should survive this dark chapter...

Paycuts are for suckers.
Cut your pay go on pogey, welfare and binge drinking.
Its the canuckistan way.
That's what the feds and McDicky want.

"No taxation without representation" - Nortel is taking your money to use as it sees fit, to keep business going, whatever that may mean this week. Now shut up and go away.

Canceling the AGM makes me angry, as I commented yesterday.

However, the more I think about the leader of a company that has 2x-3x more debt than cash, has not had any meaningful positive earnings for a decade, has basically tanked in the 3 years since he has been at the helm, and has a very tenuous outlook, taking and defending a pay raise and his cash salary that is 3x that of the leader of the free world, the madder I get.

Continuing to use a corporate jet for his personal commute, until recently outed by the public. Defending his raise.

Hey, I get that volunteering for a $1 salary is a big deal. A huge deal. I make a very small fraction of what Z makes, and I'm not volunteering.

But it's symbolic. It's sacrificial. It's being a servant to those you lead.

This is all wrong.

Wrong. Wrong. Wrong. Wrong. Wrong.

I smell a vast rightwing Cisco oil conspiracy. As if on cue, TIME just put this on their front page

http://www.time.com/time/health/article/0,8599,1878358,00.html?cnn=yes

Competence: Is Your Boss Faking It?

Bosses may be an overbearing breed, but more often than not, you've got to admire their business chops. Wouldn't you love to have that same sense of competence and confidence, that ability to assess tough problems and reach smart solutions on the fly? Guess what? So would they. If you have ever suspected your boss might not actually be good enough at what he does to deserve the job in the first place, a new study published in the Journal of Personality and Social Psychology suggests you might be right.

Social psychologists know that one way to be viewed as a leader in any group is simply to act like one. Speak up, speak well and offer lots of ideas, and before long people begin doing what you say. That works well when leaders know what they're talking about, but what if they don't?

actions speak louder than Zmails.

BINGO!

Z is coin-operated like all the GE types. Big egos, big salaries, big talkers, no conscience - that defines a good GE exec.

From: Mike Zafirovski, CEO (TORWM:8442)
Sent: Friday, February 06, 2009 4:51 PM
To: Nortel employees
Subject: Message to Employees




Team Nortel:

As you know, we are working hard to stabilize Nortel's customer base. As I've said before, to see our way to the future, we must make all efforts to keep every customer. We have also now held preliminary talks with the creditors' committees. They are getting up to speed on our business and current situation, but there is much more work to be done on that front in the coming weeks before a more definitive plan is put in place. And, we are continuing to look hard at our cost base – to eliminate any unnecessary expenses, no matter how small, to maximize savings for the company. As you are aware, the impact of the economic downturn is deep and continues to impact employees and companies around the world.

In a moment, I'll review some of the highlights and areas of focus across our business. However, I first want to address many of your concerns around the timing of the workforce reductions as I know this is top of mind. Planning has been ongoing for a few weeks now, and is in the advanced stages. The next step, once we have taken all necessary steps to ensure the accuracy of our plan, is to submit it for review and approval by Nortel's Board. It is our objective to work with speed and urgency to obtain this approval, and to communicate with you in as open and detailed a manner as we can. Not only about the scope of the impact, but also on its timetable and process.

I also want to take this opportunity to address one rumor I have heard around implementing pay cuts instead of or in addition to the reductions. The answer is we will not be doing this. Not only would these cuts not be possible in some of the countries in which we work, this move is not aligned with our commitment to focus investment to drive our future. We must continue to make the decisions that will position us to come out of the current process with an employee base that is aligned with our revenues, appropriately compensated, motivated and equipped to take the new Nortel forward.

I know many of you also have questions around when we will have a finalized overall plan for review by our creditors and the courts. This is a simple question that does not have an easy answer. At this point in time it is extremely difficult to put any timelines around when the plan will be ready for review and then implementation. There are many variables and interdependencies that are still unclear at this point. We will do our best to keep you informed about milestones in the process and next steps, and that we are sharing information as soon as it is available.

In the middle of all of this, I also want to update you on key areas of our business and the work that is ongoing to move Nortel forward.

First, early feedback from Nortel's Enterprise customers on our creditor protection filing is encouraging. Focus groups this past week with members of INNUA (International Nortel Networks Users Association), and a worldwide survey by IntelliCom Analytics of 3,000 decision-makers indicated the majority would continue with their existing plans with Nortel, and expect us to successfully exit creditor protection.

Since the announcements on January 14, the Nortel Enterprise Solutions business has been successful in winning new customers and securing contracts on a global basis. This includes the addition of hundreds of brand new wins across a variety of industries, including the world's largest hospitality network install; two world-renown universities; two of the world's largest financial services providers; an international airport; as well as leading medical centers and banking institutions. We also shipped our 1000th BCM450 unit since launching in October, making it one of the fastest-selling IP telephony solutions we've ever launched. The product also won Internet Telephony's Product of the Year Award for 2008. We also just launched an aggressive new global pricing policy to combat competitive attack programs. This is encouraging and speaks to the value we provide in the Enterprise space.

Second, in our Carrier business, we are getting ready for Mobile World Congress, where so many of our customers will be present. Along with Richard Lowe and others, we will meet with the many customers I've spoken with in the last few weeks to ensure we are continuing to meet their needs, as well as to answer any questions or concerns they may have about our current situation. Sitting down with our customers, face-to-face, and telling them we are committed to winning their business and delivering Nortel innovation is critical at this time.

I wanted to also briefly address our announcement around Alvarion. As we have said, this decision will allow us to narrow our focus, better manage our investments and strengthen our broader Carrier business to position us for long-term competitiveness. Let me be clear, as I know there may be some confusion around the timing of our announcement. This is a strategic decision around what technologies and customer segments we want to compete in for the long-term – and not a short-term decision around preserving cash. This makes sense if we are to maintain and build on our core carrier strengths for the future.

Finally, our MEN business. As you may have read in the memo from Philippe Morin, our plans to explore the divestiture of our MEN business will be part of the larger reorganization plan for the company that is being developed and, ultimately, subject to creditor and court approval. In the meantime, we continue to win business in this important innovation driver. Since September we have closed 25 new 40G deals, with two of those since our filing on January 14 alone. Our order input is strong and our sales team deeply focused on winning and continuing this momentum. Nortel's reputation as an innovation engine will only be enhanced by our plans to deliver 100G by the end of 2009. I'm very proud of everyone’s passion for pushing the envelope on our market-leading technologies in this space.

However, in parallel to the ongoing work in the businesses, there is still much that is in flux as we advance the restructuring process. What I do know for sure is this: Nortel is going to change significantly in many ways. We are going to get smaller. And that will impact people. But, we are also going to get leaner, more agile and more responsive. We must create a cost structure that is aligned with our revenue base and our investment plans for the future. As we discuss and review with our creditors, we will know more, and tell you more.

So, what's next? First, we need to continue to stabilize our business and our customer base. Second, we will be ramping up the planning phase as the creditors' committees come together and we look to develop the go-forward plan for the company. Throughout this, we will be continuing to focus on reducing costs across the business, as virtually every company in the world in virtually every industry is doing today. All of these measures together will lay a path for the future that is sustainable and affordable.

Yes, we will be transforming Nortel again – more decisively than probably at any time in recent history. We are doing this in a tough environment, in a tough marketplace, and – hardest of all – with tough impacts to Nortel employees.

We must do this to ensure we are able to continue serving our customers so that they can make it through these times. We must also move forward in a way that will preserve our innovation, our know-how and the capability that is in our people. This will be challenging. There are many competing needs and difficult decisions on the road ahead. These are emotionally charged times both in our company and in the economy in general. But, we must be focused on our ultimate objective – a Nortel that is ready to not only meet today, but seize tomorrow.

Thank you for all you are doing for Nortel.

Mike

I have translated from Zspeak to English:

Employee Peons and peasants,

Hear me for I am the mighty Imperial Emporer Z from the land of GE.

I will not be taking a pay cut but you will likely get laid off with no severance shortly.

I don't care about customers but if it makes you feel good, feel free to believe they still love us.

We are still going to Mobile World Congress even though we have no UMTS and little GSM business - its what we do to pass our time.

Our old "partners" like Alvarion are getting screwed like you, don't worry, be happy.

I want you to be happy while we plan to dump you. You are hereby ordered to feel good about me, my chosen executive flunkies, and Nortel. Anyone found not feeling good or participating in our next "Back to Jonestown" I Believe event will be laid off and dealt with harshly.

That is all

Imperial Emporer Z

LOL

Just hilarious! The only sad fact is that this is how Mike Z probably thinks internally in his head.

"And, we are continuing to look hard at our cost base – to eliminate any unnecessary expenses, no matter how small"

Thats key right there: eliminate the unnecessary small stuff first - light bulbs, highlighters, disposable coffee cups, consumables, engineers, benefits, labs - then eventually work your way up to the big stuff - jets, campuses, and lastly them biggole salaries.

He still does not get it. Nortel as a standalone entity like today is FINISHED. Customers will not buy from a bankrupt company that is below critical industry mass with no plan to revamp their business. The only way forward is to sell the profitable parts of the business that could continue to evolve - MEN, enterprise voice, CDMA, VOIP. Then take the leftover legacy pieces like TDM, GSM core, enterprise data and run them to maximize cash flow and profit.

It is a surprise that yet nobody has inflicted physical pain to this guy. Maybe one of those employees that had worked 25 years and got fired without pension, severance and they have kids in collegue and medical bills to pay, would go nuts...

Grow up people!

Threats of physical pain or even death threats are not going to solve the issues at Nortel.

This is getting really sick when a so called Social Media Expert selling himself as a Consultant endorses these kinds of threats on his most active blog.

Dude. You didn't get it. Nobody is threatening anybody. Just a question.
You probably gave to grow up as you probably continue working there accepting the daily phsicological brutality being inflected by these guys. If you knew the real story behind how nortel ended in chap 11 you would realize how thisis the result of perfonsl agendas and not market.

Hm. Looks like its high time for certain people to ride on the Peace Train to NYC and admonish another stodgy holdover from the Cold War who is blatantly, selfishly, desperately cynically attempting to incite violence and anarchy just as the New World Order (peace be upon Obama) is finally within the Proles' reach:

http://www.cnn.com/2009/US/02/11/amputee.housing.crisis/

"WALL STREET CAN GO STRAIGHT TO HELL"

Luis Caplan served the poor of the South Bronx for decades out of a small medical office. His leg was amputated after a bout with cancer in 1990, yet he continued to work for another five years.

Luis Caplan, 71, asks of the stimulus package: "What happens to the real middle class?"

Now, his savings have nearly been wiped out because of the economic crisis. At the age of 71, he faces losing his apartment if things don't change soon. The government bailed out the big institutions, but "what happens to the little people?" he asks.

"I don't know how much more I can go through like this," he says, sobbing even more. "I'm going crazy with this."

Located in a tony neighborhood in Manhattan's Upper East Side, apartments used to sell in a matter of weeks. Caplan has dropped $50,000 from the original asking price of $625,000 and may have to drop the price again.

Living in a tony $625,000 home constitutes "hardship"? Somebody please wheel this whiner down to NYSE and buy him some NT stock to shut him up, already.

Oh, wait...

I agree 100%. There is no need for threats of physical violence against this man, no matter how much of a thug he is. I understand there is much enmity against him for obvious reasons but resorting to threats will not solve anything and may even make the situation worse. Having been the target of threats myself, I can say that I would wish it upon no one.

However, TIC I question your assertion that Mr. Evans "endorses these kinds of threats" I have yet to see a post by Mr. Evans threatening physical violence or death against Mr. Z unless you have read something I have not. Care to point me in that direction or give me a link?

Until you do, you cannot claim that Mr. Evans endorses this comment any more than he endorses yours. Does Mr. Evans speak for you and your views? Probably not so how can you say that he speaks for other commenters?

Mr. Evans is the Blog Owner and as such has editorial rights to accept or deny any post made to this blog. You're correct in saying that he personally has not posted threats against Nortel people.

However, I do find it fascinating that a person who markets himself and his consulting company as a Social Media Expert would permit Threat Posts on this blog. To me, that doesn't make good marketing sense for a person wanting to sell his expertise.

Seriously now wheres the threat? And why is the poster not being addressed directly?

Mike Z is showing, well, Zero expertise at marketing Nortel at insane cost to thousands. He's got fans and volunteer bodyguards working for free to protect him from harm.

Mike needs you to defend him from harm. Gotcha.

Thats a vain effort in a two-fold sense - its selfish and also wouldn't bring the money back much less fix Nortel.

A conveniently distracting death threat or a stalker plucked from the Nortel underbrush (30% greener than Ciscos, btw) is all Mikey needs to take the rest of "his" money and run: 'Its Nortels fault they suck. They're all nuts over there"

Is Nortel the great-grandma on life support, being kept alive well beyond her years? Is it the trusty yet ailing pet that should be put down? Or is it the drug-addled dopehead cousin who caused the wreck that put him in a coma?

I'm sure that most current and ex-employees are reasonable, ethical and moral enough to know that physical violence is the worst thing to consider.

What I (and many others) want is simply the chance to have a face-to-face discussion with MikeZ and his immediate team. Hiding away from us, not openly facing us to answer questions about what he has done to us and to Nortel, is just making matters worse.

I want the opportunity to question his leadership. How can he claim to be our leader if he can't empathise with us and show solidarity on the issue of pay, when so many people have been left with nothing?

I feel that his refusal to cut the pay packages for him and his team, and his continuing use of the private jet (until last week) has further damaged the credibility of Nortel with our customers and suppliers - how serious can he be about saving Nortel and maintaining relationships if he won't make changes to conserve cash that impact him personally?

he did not cut exec pay cos joel said he would punch him in the face if he did.

TLB, Honestly, I worked for BNR (and later Nortel) for quite a while. I was always very impressed by the professionalism and level headed rank and file technical staff, line management and engineers. This calm and purposeful approach went up through the management chain to many of the directors. I am always very proud to have worked with these people, and I run into some of them now and again in my current job.

Once you got above director, and over in sales and PLM there were some "hair on fire" types.

Haven't been there for over 10 years now. Don't know what it is like, but I hope they are the same pragmatists they always have been.

Why is this a surprise to anyone? It has always been apparent that Zafirovski is a fake. Zafirovski is not a real leader or even a CEO. He is a failure and a rather spectacular one at that. It is apparent even to the casual observer that Zafirovski holds others in contempt and has absolutely no idea what it takes to run a company in the technology space. The only thing that gets him up in the morning is money and the opportunity to validate his "alpha" by bullying people into thinking he knows something they don't.

Hopefully we are seeing the demise of this I-me-mine style, Perhaps the bright side to financial turmoil will be to separate the men from the immature bullies. Maybe we will see a breed of leadership that leads because they enjoy what they do and because they know it is important to reveal the right path forward. People who carefully consider the ramifications of their actions in the context of their industry *and* the employees and shareholders. Leaders that are not simply reactive. Leaders that can asses and take a calculated risk thinking more than a few moves ahead. Leaders that think more about the company 10, or 20 years down the road that they do about how to squeeze the last dime out of it for themselves.

.............................but I have my doubts.

Guys like Zafirovski will still be around bullying BoDs into thinking they know what they are doing and milking the companies, their shareholders and employees dry to pay their undeserved salaries and perks. Hopefully this experience will not be forgotten and the Zafirovski brand will be worthless………….

Hey Bo, how is that book coming?

According to an interview with CTV Ottawa, The Z man will come to Ottawa Feb.26/27...Bring your shoes if you are still around then !..

Did anyone see that little cough he made prior to answering the question "Are you sorry that you had to cut severance pay"...? What's an actor...I hope the "I believer" cult satisfied with their leader's performance.

It's been a while, but you guys crack me up. You had no problems seeing your colleagues' lives and careers trashed over the last few years, but now, "oh no! it's me this time." Too much.

dead on. when people were laid off before most would say thank god its him/her. theyd put on this charade of doing a lot of work and kissing behinds.

feel sorry for some of the good people but glad its these fakes with smirks on their faces.

"watch people you love and respect" what a whole bunch of crap.

not to forget the hours they would put to figure out who might get laid off or who got laid off and why thy got laid off and which poor new grad should do the work freed up from the layoff and how they can manage this new grad.

buncha lazy powerpoint people.

No, it has sucked watching 16 rounds of layoffs. But at least those 70,000 people were provided a period of time to go out and find another job somewhere. They were provided 60 days to find a job internally. There is a huge difference between that and what is going on now.

Agreed. Exnt_x_2 - you really are assuming that those of us who are still here didn't feel a lot of empathy for those that left before us. It's been very difficult to watch people you love and respect find themselves left out in the cold.

Given the job market as it stands, and the lack of severance and out-placement assistance, this is a very bad time to be let go by Nortel.

Keeping this in context, you must remember that Judas Z is a cold hearted self centered control freak. He hasn't got the spine to actually come clean with his employees but instead hides behind his Jmails.

After hearing numerous stories on how people are treated, I am disgusted that I even worked for this outfit. Of course they have you by the balls due to the economy, but continue to look for new employment. This loser is sending Nortel into Chapter 7. GUARANTEED. If that happens you will not get paid, you will not get vacation pay and you will be treated worst then what is happening now.
Is it worth it to you to hang in and possibly have your pension (TRAD 2) lost, or get out now with what you get and stick it in a locked in account? Don't wait until it's too late. Spend an hour a day on Company time, planning your future. Don't feel guilty as the Judas mails are designed to make you feel that you owe it to him to press on, business as usual. Ya right MFer. Sorry Judas, you reap what you sow.
I do wish all the best for the people that I used to work with and all employees having to go through this nightmare.

Sadly, this is probably the case. They lied about Ch. 11, whos to say they aren't lying about Ch. 7 as well? If there's anything we've learned its that they have treated employees, shareholders and the public at large like mushrooms: Keep them in the dark and feed them you know what.

This is true. Mike Z and the GEniuses that have a very real part in getting us into this mess only care for themselves, so what message does that send to employees?

Of course they claim that they will turn things around and create the "New Nortel", but that's the same talk we've been hearing for years. I hate to say it, but if the past is any indicator of the future, Ch. 7 may be what's in store thanks to these devious fiends.

super control freak...--bb

The Nortel board really must want to keep him in charge and migrate Nortel to the FIRE (Finance Insurance Real Estate) economy like Jack did with GE. . It appeared to work for GE for awhile but GE is now tapping bailout money from the TARP. GE Capital is insolvent. Great job Jack.

Jack will tell you it didn't happen on his watch even though he created this mess...--bb

I've been working for Nortel in Australia since the early 90s and have watched ,from afar, a powerhouse company turn into a 3rd world supplier

I've worked with some of the best engineers in NA and UK and shook my head as one by one they all walked out the door replaced by automatons in COEs.

Ever since zman took over the company, it has shrunk and shrunk and shrunk.

Given Zmans salary I would never accept a government bailout while these sharks strip the company of any worth left in it. Canadians, dont throw your tax dollars at a company run by these sorts of people. For those people who have lost their jobs I wish you all the best, you deserve better.

I doubt Mike will listen unless we poke him in the ego. Deflate it, so to speak. Besides the house and jet, here is another place where the money is going:

http://www.edinborothetachi.com/node/33/text/javascript/activemenu/menu

If you have a point to make about MikeZ's leadership, ethics, values, character, etc, the folks who accept his money and use his name might be interested. If you have a personal story about how you have been affected, I suggest you tell it to them.

This was my favorite part.

"He said that Nortel executives and employees will not be getting any cash bonuses though the company enjoyed big improvements in operating profits during 2008."

Big improvements in operating profits???? How can a sane person make this rationalization given the fact that they have filed for bankruptcy? Where can I get a job at $1.2M a year where the only apparent qualification is that I am delusional?

GE

Greedy Z man,s home address available
if you would like to send him greetings

contact fatzoff@yahoo.com

Here is a picture if you just want to deliver it in person :)

http://virtualglobetrotting.com/map/49065/

Lots of nice trees and foliage in the backyard.

Mr Z hides in the trees and plays Robin Hood except he steels from Nortel shareholders and employees for his greedy self. Actually his wifes name is Robin. Hmmmmmmmmmm

steals not steels

Here’s the skinny: Z is all about Z; talks the talk but can NOT walk the walk (and I have first-hand experience with this). As I stated here before I personally advised him to put half of his 2007 salary in escrow and he thought I was crazy. His leadership skills come from books on historical leaders and Jack Welch; the worst piece of corporate scum ever!

Throughout his career Z has surrounded himself with ‘yes boys’ that have no courage to stand up to him, which has given him a false sense of righteousness; he really believes he is above it all. The only thing he truly respects is FEAR! - bb

Spot on again. This is the GE-style of leadership, perfected by the most arrogant of them all, Jack Welch. The "Welch Way" is all about CEO perks, even if the company is driven into bankruptcy.

This "school of Welch" has produced some of the most outrageous CEO compensation packages even as the companies under their stewardship have faltered or failed miserably. This is because one of the central tenets is an "all about me" philosophy, that places entitlement, greed and self centeredness first.

This has produced some of the greatest homages to Gordon Gecko with the sole difference that Mr. Gecko was actually good in making money in business dealings!

As a suggestion to those who were not paid out with recent severance. Wait until taxes are done in both the US and Canada and then rat Mr Z (and possibly Joel) out to the respective taxmen (IRS and Revenue Canada). If Mr Z is as arrogant as he appears to be, he will probably not claim the executive jet use on his taxes (personal gain == taxable) and there are "finders fees" that taxmen pay out for this information.. Remember President Obama just had a similar situation with one of his cabinet people and I am sure Mr Z and Joel have probably used the company assets for personal use (probably taxable) and "forgotten" to claim the gain.

I am sure he negotiated a "gross up" to pay the taxes on his jet use.

ExNtrl,
You are wasting your time making this suggestion. One of their executive level perks is paid tax return preparation by the company auditors and said auditors will not miss something like that.

In fact, the perk is available even at the expat level.

I am sure both of you are correct and that Mr Z is using skilled tax preparers the same as Daschle when he missed the use of the car service
http://www.usatoday.com/news/washington/2009-01-31-obama-cabinet_N.htm?csp=34
Out of curiousity are these the same company auditors that were used for the multiple financial restatements over the years?

Mike Blagojevich (must be Rod's First Cousin) is the worst executive in the World. Looks like he did his interview via Telepresence as well (scared to face the media or is it he doesn't have his jet any more??? Poor Mikey)I know there are those out there who say "I Believe". Well I have another tag line that is more appropriate "I Don't " . Folks should make these " I Don't " posters as a rebuttal to this BS "I Believe" crap that Mike Blago, and Joel "the Hacker" started.

Video of the interview: http://www.youtube.com/watch?v=3EqQrpep7aE#t=1m30s

Below in quotes is a key point he made. Very telling one way or the other.
One of you eggheads should look it up and see if what he said is true. Very telling statement on his character and how in touch he is or pretends to be.
Prove him wrong.

"Some executives of top companies have cut their pay to $1 when their companies hit trouble. Mr. Zafirovski said those executives also typically got stock option awards in the $25-million range"

Yes, but these executives hadn't driven their stock value to ZERO which makes stock compensation somewhat meaningless.

This - KNUCKLEHEAD - doesn't get it. I really don't think he feels he has failed. I believe that he believes that Nortel's troubles are due to the problems he inherited and the economy. He is a malignant cancer on the company.

My sentiments exactly....

i vote we pay him his salary to LEAVE!

That would be $1 in Canadian Tire money, right?

I vote that we reduce his salary to $1, then pay him his salary to LEAVE.

On the flip side, that would be $1 more in severance than most Nortel layoff victims will be receiving...

well said!

Not surprising at all. Remember he was groomed by Jack Welch - the king of corporate personal expenses, salary and perks.

easy guys. hasn't mike lost around a million $ by investing in Nortel stocks?

Let me guess, he also said he initiated the grounding of his beloved jet to saving the company expense ?...He couldn't come to Ottawa to face the music there and see his "I believers" because of the grounded jet..poor Mikey !

The guy is a cold-hearted crook..He couldn't care less for his employees and even less about what people think of him...He has his ~30million, his family is well taken care of, he doesn't have to work another day...all he needs is to put on the hat and retire to Skopje. He couldn't even care if there is no Macedonian in Macedonia.

The Citizen is silly in asking these questions when they know full well the answer from Z would be a "No".

Netas was using irony....I guess. Wasn't you, Netas?

Yes, he has indeed lost almost all the million. At the same time, this is no better or worse than many shareholders (including employees). His team (under his leadership) has left thousands of employees without severance and benefits - with many more to follow. They've also left tens of thousands of current and future pensioners with worry and and large unfunded pension liability.

Add up how much he has taken out of Nortel (legally of course, with the blessing of the BoD) in the Motorola buyout, salary, bonus, stock options, reserve stock units, performance stock units, exec pension and of course the travel expenses. More than $30M in three years I expect.

I agree with the point - be a leader. Make the statement to his employees, customers, the financial market and the competitive marketplace. Take a dollar. If Chambers managed, shouldnt he?

And yes, he still has a job.

I think he would take a dollar if he thought Nortel was going to survive all this and re-emerge as a public company with him as the head. He KNOWS that won't be the case so he cashing the checks for as long as he can. He won't likely be able to land a job elsewhere after this. He should be in the same jail cell with Dunn when all is said and done.