Ernst & Young: No KEIP for Senior Executives

If I read correctly, looks like they now decided to pay any Calgary folks that were promised retention bonuses in 2008….these were initially canceled I believe when they filed.

I would hope that E&Y would have within it the social and ethical wherewithal to not incentivize the same senior executives that created this mess (or allowed it to evolve for many years) to now benefit, via subjective and immeasurable PLAN milestones, from Nortel's downfall. To this point, SLT is effectively holding the company hostage; corporate pirates, if you will, seeking KEIP as ransom to with empty promises to save the company while they are teed up for 100% bonuses (read severance packages).

Instead, only incent senior executives only upon seeing the plan through EXECUTION (a foreign word and concept rarely embraced by most Nortel SLT) That is, senior executives should be thankful (like rank-and-file) to simply have job at this point, particularly seeing as they are directly responsible for the past three+ years of missteps. Only upon emerging from bankruptcy, only by returning to profitability, growing top-line and other OBJECTIVE and MEASURABLE milestones would any senior executive see a penny of bonus.

“Cost Reduction” and “lean and mean” and “approved plan” is subjective – it's too easy – and doesn't require the SLT to execute. Make Zudas and the rest of his flunkies earn their keep.

$45 million + additional millions for Z & co. likely another $45 million.

wow. how do I win such a lottery. better odds than playing the Lotto. guaranteed winnings.

Maybe it will be $65 Million for them then.

Exactly my thoughts. Mike Z and his sycophants need to actually provide something of definable value, such as leading Nortel out of bankruptcy as a viable, profitable company, before getting any kind of bonus. Until then they should consider themselves lucky not to be thrown overboard like they've done to so many of the rank and file. And of course unlike the rank and file, Zeroman and his lackeys' incompetence give little chance of ever again finding employment at the same executive level they now enjoy at Nortel.

In one of the awful z-mails, Mike said that he has removed himself and is not part of the “initial” filing for the proposed bonus plans.

Please pay close attention to the word “initial”: you can bet that there will be other compensation plans that he WILL be part of for the “good of Nortel”.

What is the difference between RAP- Retirement Allowance Plan and
KEIP- Key Executive Incentive Plan? How was the money generated to
pay for all these key executives? So. Nortel has$45 million in bonuses
plus the $23 million under KEIP. Is this correct? Total fo $65 million for
execs and the rest of the clowns!
Will a retired executive get the RAP money too?

“And of course unlike the rank and file, Zeroman and his lackeys' incompetence give little chance of ever again finding employment at the same executive level they now enjoy at Nortel”

Oh man… if only this were true. Zeroman and his lackeys' will have absolutely no problem getting their next position. Nothing sticks to those who move in this blessed circle of fair-haired children of GE.

Maybe we should all take their lead and get out every last dime before Nortel goes the way of the dodo. If anybody doesn’t think that will happen I would suggest you look around at the competition Slattery (Cisco), Spradley (Nokia Siemens), Flaherty (Juniper) and the list goes on….we are stuck with 2 guys from GE and of course Motorola (Handset division). They are stalking up with Nortel IP and we get a new guy from HP of which I still haven’t seen an official announcement.

Check out Docket 421 – Looks like Zman and the SLT were planning to party in Vegas:

Caesar's Palace

CTIA wireless March 27,2009 – April 3, 2009.

$149 – $2300 per night

Eight days / 722 room nights

I wonder who the $2300 per night room was for ?
At least, unlike Barcelona, they are trying to cancel “some” of their reservations.

One reason the docket gives as to why they want out of the contract is:

“the Debtor believes that the prices in the contract are above current market rates for hotel rooms in Las Vegas on the dates of the conference.”

Weren't they supposed to be thinking about reducing travel expenses long before they made these reservations? Looks like another retroactive nunc pro tunc decision.

I put my brain to work trying to figure out which Nortel employee was entitled to a $2300 night over 4 nights ($9600). And I wondered if they had a corporate jet to get them to and fro…

This is another example of z-man fleecing the company, although he would declare himself “innocent” since he didn't make the actual booking request. (But I'm sure those working under him know the type of accommodations he “requires”… rather “demands”.)

Well, you can post something on

http://www.hotstocked.com/officers/m/mike-sveto…

although I doubt that will make a difference.

KEIP is yet another fraud perpetuated by Nortel management to fleece the last remaining money from the coffers before Ch.7 and the creditors close in. This can be confirmed by looking at the facts: What company would want to poach any of the defective members of the leadership team after seeing what they have done to Nortel? These leeches have NO WHERE else to go and to suggest they need KEIP is an insult to anyone with intelligence.

If anyone needs a retention bonus its the rank and file employees who have been abused and misused. They are the ones doing the work and generating revenue, not sitting at the top and sticking their money grubbing hands in stuff that does not belong to them. Having had their severance revoked, they are the ones who truly need an incentive to stay on board this sinking ship.

There is nothing common about what Nortel does.

TongeInCheeks, why do you continually brown nose this unethical tyrant coming to its defense while trying to turn employees against honest posters?

You go to great lengths to selectively disclose a defense which I find utterly misleading.

s_s,

were these terminations all over the US or in specific offices? was CALA in South Florida among them?

Mr Z. might want to reconsider trying to renig on his deal with Caesar's less he wants to wake up with an equestrian head in his bed.

And to quote the little man hiding behind the Chapter 11 curtain, the Great and Powerful “oZ”

Today I want to talk to you about: something that is very dear to me, something that I have a ZERO TOLERANCE policy with and that's……
Integrity…
Integrity…
Integrity.

“We compete vigorously and fairly in the marketplace with integrity. We are honest, and obey all applicable laws. We are committed to live out our values. We treat others with dignity and respect. We strive to do the right thing for individuals, organizations and society in general.”

(Although I did overlook a small incident in a parking lot at a basket ball game in NC, but that was only once and besides it was a close friend and protégé)

In addition doesn't Mercer hold the purse strings on the Nortel pension fund? Do I smell a conflict of interest here or is it just a combination of fraud and more greed all around by the players involved? Why would Nortel hire them at such an astronomical cost to develop a recovery plan? Isn't that what oZ and the boys get paid to do? Let's just burn up what's left of the 2B in cash to hire someone else to do what we failed to do in the last three years, yeah that's a great idea. But we'll tell the banks that we need to retain our own group of own geniuses by showering them with a “little” retention money so we don't lose them. Just where the hell do you think they're going to go to Cisco? But not to worry they have all signed non-competition clauses I'm sure, not allowing them to forfeit any confidential Nortel info, just like the severances packages signed by thousands, I'm sure they'll honor their end of the bargain too. You have nothing to worry about.
There was a call back in January with a Mercer representative talking to the 401K and pension fund concerns, and let me tell you he was doing a song and dance number that would put Fred Astaire to shame. He noted that the plan was way underfunded which eliminated any chance of lump sum pay outs, and also he noted that the next payment to the fund was due in April, if Nortel decides to make it.
Let me think for a minute here….pension fund for thousands of employees spanning over decades or executive bonuses up the 183% before filing Chapter 7 for us before we fold up this circus tent. With the recent KEIP program imitative…..What's your guess?
Not only are recently impacted and future Nortel layoffs (who'll be lucky to get a few “Atta boys” as they're escorted off the property) going to be impacted by this, but so are generations of ex-Northern Telecom employees, minus one Mr. Roth of course. (he's set for life)
So, I'm wondering when does this “integrity” thing is going to kick in here by a man that has preached it since his first day on the job some 3+ years ago ( aka The 11M $ Messiah). Why can so few be allowed to ruin the lives of so many all in name of their own personal gain? How could anyone even consider letting these folks reward themselves for their own failure, as they destroyed what was once Canada's largest employer?
Unfortunately the Great and Powerful oZ still has about 18 months left on his 5 year plan/contract or Nortel will need to pay him another 10M in an exit package just to can his sorry a**.
Can anyone fill me in on the next ” I Believe” rally or are they still even around? There's a few things that I believe in, one is that every dog has it's day and what goes around comes around. Now a days the only difference between Nortel and the Titanic is they had a band.

Desk Jockey.. keep up the good work. The videos are the best. Given the chance I’d like to shake your hand for calling a spade a spade. I've shared your efforts with everyone I know….priceless.

Spradley..a smiling giddy walrus who tried to give the impression she was tough. A PR puppet.
Flaherty…Did she ever really do anything but PR stuff?
What they have in common. Greed Man. Greed.
The executive mantra.
You have to remember.
The typical overpaid executive has no clue what they are doing.
They are in that position for four reasons.
Good in front of a camera.
Good in front of an audience.
Good when being interviewed by TV or the newspaper.
Good at sucking up to the boss and being a true clique member.
Besides that there really isn't any substance to an exec.
They basically make bad decisions and don't listen to the peons.

Shameful bunch of executives ….. after taking the company to this pathetic level ….. these people have the audacity to recommend a retention bonus for these executives. Mike Z should have been fired a long time ago along with his poodle Hackney, who isnt a man enough to pick on someone his own size.

… the recent crash drowned many pigs like mad-dog Maddock the fraud, a pyramid of drained investments

Also AIG mega bonuses negotiationgate to run company held hostage, enraged many including the President of the United States

We should not ,and as a rule don't ,negotiate with terrorists yet we are held hostage in our own countries.

bonuses amounted to “stealing from a corpse “…shameless
Not unlike Nortel asking here for bonuses in my view….

Also., Nortel still has another supposed bill or so offshore but it is locked up, does this mean with or without a key?

No money but lotsa bonuses makes no cents… of the cash it should be distributed to the greater number of heads as I have always advocated =), like severances for example, one I feel is of an exponentially greater priority .

Something is not right this high up this many times one is inclined to ponder =)