Ernst & Young: No KEIP for Senior Executives

... 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 =)

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.

What is the "confidential report" they keep referring to?

They make it sound like if they don't pay they will lose key employees, like this some sort of internal ultimatum or something. What about the vast majority of their employees that are not only not included but when canned told to stand in line with the rest of their creditors?

A lot seems to be requested to go off shore too, where their cash is locked up.

Anyone would normally be a shocked beyond belief but this is not a normal company and I guess everyone has desensitized to a state of who cares numb by now.

If the courts approve this, there should be a public inquiry.

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.

When are the creditors let out of their cages to respond to all of this?

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.

What is crystal clear is that the Nortel "executives" (with approval from the BoD and the BK court) hired Mercer to come in and put together a compensation package (KEIP, KERP) so that the "leadership" (including HR) could absolve themselves entirely.

It should be no surprise that Mercer gave the executives exactly what they wanted, and that the rank and file employees were not (to a significant degree) part of that equation.

As a "rank and file" employee, I would not accept any bonus monies until / unless Nortel successfully exits BK; I suspect many others at my level would agree. Our "fearless leaders", on the other hand, have no qualms taking bonuses that they don't deserve; afterall, they are used to doing this and have been doing so for many years. It is their sense of "entitlement" and is paid for on the backs of their employees.

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.

Great find! More of the same hypocrisy, do as I say, not as I do...

Actually, it is pretty common to reserve a suite to be setup as a Hospitality Suite for customer meetings and non-disclosure private discussions. You will notice in one of the exhibits that there was also food and beverage charges which is also typical for a Hospitality Suite.

http://business.theglobeandmail.com/servlet/sto...

The double wide jacuzzi could definitely be used for customer meetings or non-disclosure discussions of a different kind.

At least they had the sense to cancel although you I am trying to understand how sending 180 people to conference is not a little over the top as we had an effort to reduce expenses and have been ratcheted down on expenses forever and then some.

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.

James, you really are ignorant to how this business works regardless of the company name. I've been in this business for over 20 years in many different roles and have first hand knowledge on how many of these things work. I've also worked for a Networking Company that went fully bankrupt so I've had direct experience with this type of thing. My posts are based on business and my experience, instead of emotions and the desire to see a company destroyed.

Am I pleased with Nortel Executives - not a chance. They have done numerous things wrong. But that doesn't mean I want to see Nortel destroyed. I'm also sick and tired of your relentless crap and attacks against me and anyone else that doesn't want to see Nortel destroyed.

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".)

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

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.

Spradley? I've still got the glass butt plugs that she bought for everyone back in the day sitting on my desk..

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.

"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.

Well, you can post something on

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

although I doubt that will make a difference.

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?

The US judge approved the 1st part KEIP/KERP (23million) for the non SLT/ELT people. The motion for the rest (22million) will be considered March 20 which is the same date when the Canadian judge will also discuss and consider the same motion tabled by E&Y in the Canadian Bankruptcy court...expect him to grant the motion also..

The henchmen will start the axe in full motion soon I'm sure.

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".

these execs have no choice but to try their best to save this company. I mean who in their right mind would ever hire a Nortel exec if they go bust?

The GE fraternity would hire Joel or Mike or Dennis

They have been trying to save Nortel for three years.

All these "special" bonus plan are just a way to get more money for few people...
Let`s go back to Nortel Core Value about People:

**** We act on the belief that our people are our strength, knowing that the knowledge, commitment and talent of different people around the world drive our success. This is reflected in our people practices such as recognition, development, compensation, etc. We maintain a business environment of dignity and respect. ****

And the best one is .....

***Great people want to come work with us and stay with us.***
As quoted on the following link:

http://www.nortel.com/employment/life_at_nn/cor...

Why there is these all these high cost Retention Plans if "Great" people want to come to work with us and "stay" with us.... perharps there is no more GREAT People at the TOP of NORTEL !!!

management interpretation for restructuring plan

**** We act on the belief that our people are our strength, knowing that the knowledge, commitment and talent of different people around the world drive our success. ****

so since we are not successful, what use is this talent. they obviously did everything wrong so fire all of them. no severance. no pension. nothing.

**** This is reflected in our people practices such as recognition, development, compensation, etc. ****

rightly so. business is crap so what more do you want. our practice is give all the people the boot.

**** We maintain a business environment of dignity and respect. ****

thats why management does not want to deal with you. you can go to a room, pick up a leaflet and be walked out so everything stays intact.

***Great people want to come work with us and stay with us.***

the only great people here are the executives and we plan to stay for the bonus retainers.

Maybe it will be $65 Million for them then.

The Enterprise division had a round of terminations this morning. Field sales reps and engineers were let go.

s_s,

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

$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.

It doesn't matter how many millions they are requesting in the end,the fact that these idiots have the nerve to request this money in the first place especially during a very difficult time at Nortel with coming layoffs and operating under protection says alot about everyone at the senior level including the BOD who shamelessly agreed to accept cash in place of the traditional stock compensation.

PIGS!

Call the Monitor
1-866-942-7177

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.

My thoughts exactly. 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.

excellent... but these incentives should include all 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.

GOOD that they are recommending no KEIP for senior execs. However if they are excluded it does make you wonder...just who IS included? and whether this is the way forward? Is it ethical to only reward only 97 people (including execs) out of a work force of 25,000 - that is 0.00388%