More on Mike Z.’s $12.2M Claim

By Mark Evans | Published: October 14, 2009

It’s nice to see all the coverage about ex-Nortel CEO Mike Zafirovski filing a claim for $12.2-million after AAN broke the story last week. The Toronto Star’s David Olive has a critical column about Mike Z.’s time as CEO, capped by this statement:

“Zafirovski lacked the basic leadership skills required – he had never been a CEO, after all – to say nothing of the turnaround-CEO skills Nortel manifestly needed.”

Zafirovski may be entitled to file a claim for the money that be believes Nortel owes him but it comes across as a misguided act of hubris. What do it given Zafirovski made 10s of millions of dollars during his 3+ years at Nortel?

[Slashdot] [Digg] [Reddit] [del.icio.us] [Facebook] [Technorati] [Google] [StumbleUpon]
This entry was posted in Executive Suite, Financials. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.
  • NortelTragedy

    Mike Z also “claimed” to be a turn-around CEO … his claims are worthless. The SOB should get in line like everyone else.

  • eluc

    hi.
    I have a question.
    How own Nortel ? Wich company or found ? Who gave Zafirowsky CEO ?
    Thank you

  • cj3499

    If it were left up to the employees, Z – man should pay penalties in the amounts he is requesting for letting the company go bankrupt.

  • Nortel_Employee_2009

    We need to enact new laws to hold these guys reponsible for their doings. Employees and Shareholders should be able to file claim against their property to recover their losses.

    Problem is that the law makers are cowards and are in the pocket of corporate chiefs. Remember the show they put on in Ottawa, putting Z on the stand and asking the tough questions. Whatever came out of it. NOTHING…Absolutely NOTHING.

  • AnotherSlave

    I think he should get what he deserves. Is there anything less than a negative value?

  • fatzoff

    When you say get in line that sounds like ” Ya we will give you something, just wait over with those former dedicated employees and pensioners we will eventually get to all of you .”

    That SOB lying, crook deserves nothing.
    but a life of utter and complete misery.
    Google his home address and see if he deserves payment.

  • praying_mannis

    It's ridiculous that Mike Z would even come and ask for anything, let alone 12.2 million. But it's really sickening to see someone that's still on the payroll, like Joel Hackney filing a claim. It seems to be a conflict of interest when he's negotiating with Avaya while filing a claim at the same time. That sends a real ethical message to the troops, especially the troops that were sent packing with no severance. It’s kind of like finding Joel in a Titanic life boat the morning after holding a baby in his arms while asking where’s his reward for saving the babies life! Avaya should put his ass on the road!

  • wasthere

    These guys (CEO's and directors) are been offered golden contracts. They do well, they get the moon and much more, they screw up … …they still get the moon ! You have to look at the BOD to see where this situation originates : buddies hiring buddies ……simple as that !

  • baynetguy

    Why not issue $12.2 million dollars of worthless Nortel Stock. That will satisfy all parties I believe.

  • scalppeeler

    What else would you expect from ottawa or ontario for that matter.
    They don't care about victims.

  • scalppeeler

    Absolutely right about that. That really is pathetic and should be criminal.
    Seems nothing at Nortel is criminal though, unless it is execs like this group who feel they've been victimized out of millions when they scammed and manipulated to steal millions. This should be a conflict of interest. How can this be allowed. Can current employees file claims in anticipation of getting the crap end of the stick? And while joel is holding the baby on that lifeboat, hidden beneath his clothing is jewellery from all the stiffs he rolled who remained on the titanic while she went down or didn't have a lifeboat given to them.

  • longgone

    he deserves the dough…..kiddie play dough

  • http://nortelinsider.wordpress.com/ Desk Jockey

    Careful, you said “babies” instead of “baby's” so beware of TongueInCheek descending from the clouds to Totally and Unequivocally Discredit Everything You've Said because of a minor typo!

  • nortel_goose1

    Enterprise data employees have started getting offers from Avaya. All upto Director level have gotten offers, along with senior / critical employees from each group. Salaries remain same but Avaya stock options are give.

  • NT_NoMo

    It is pathetic watching all the vultures and scavengers (Z, Hackney, etc) pecking at the rotting flesh that used to be Nortel.

  • GoProto

    In the meantime, he probably slapped a few of the mothers of these babies in the face and pushed them out to sea so he could be seen as a savior. I wouldn't put anything past this dynamic duo.
    Word I 've heard is that Silverlake thinks Joelykins is a verifiable Fruitcake.

  • ntpurgatory

    The question is, when will the people that aren't going to Avaya to be notified. Will it really be the case where I am sitting next to my coworker who is relieved to see the offer they have while the other looks around and says “uh oh” ?

  • protosphere

    “Thus Zafirovski is just one more ex-staffer lining up in the remote hope of getting some crumbs from the table when the vultures have finished their bloody feast,” writes U.S. tech blogger Martyn Warwick.

    “It's just that, as usual, he wants more crumbs than anyone else.”

    _____________________________________

    He lied about his compensation at the government inquiry he was forced to attend by subpoena

    When defendig management bonuses against cut employee severances he heatedly cited his children's education vested in his $20 buying opportunity not knowing, and this BSc in math asking if a million dollars was a lot of money, again not knowing… like their going to fold.. not knowing…

    This junior on steroids is now claiming exorbitant remuneration for these periods he denied getting anything, in what he said before the government inquiry… A lie or did he not know that he would claim later at the time of questioning too. Dunno dunno dunno as Manley defends Dunn…to claim he didn't know either… like their past board….

  • carlitoburgante

    The sheer truth in which these so called leaders fail to realize is that they are mortal men without the super powers in which they believe that have and are entitled to. Mike Z, Richard Lowe… please know that we will all have to stand before our God to give an account/testimony of our actions.

  • CrazyCanuk

    I've never heard anything about the plan or timing around notifying the “surplus population” that there wasn't a place for them in the new regime.

  • scalppeeler

    That line of thinking doesn't do much for you while on earth.
    If you turn the other cheek in this life you'll be staring at the ground most of the time, while everyone takes and takes.
    I guess the Federal and provincial governments “turn the other cheek” while we get abused left and right due to our lax immigration policies and screwed up agendas in canuckistan.

  • gone2moro

    Note that this has anything to do with the post……

    Avaya is having it's annual sales conference this week or next…. in Nashville….woohoo! AND apparently Avaya has a policy to keep sales folks from being lonely, you have to share rooms….. The other man's grass is not always greener.

    Good luck to you all in Enterprise.

  • misahk

    I understand Cisco has this shared room policy as well. May be Nortel sales have been spoiled?

  • ihatezman

    In several countries, a person like this would lose all of his assets. The court would arrest them all and put to an auction in order to get money to pay employees and pensioneers. Hi Judge, please consider do it! Instead of giving milions to this incompetent, get all from him to pay the honest ones like Stan and Barbara, who spent their lives working to this company. By the way he was the responsible guy for the company.

  • less

    Tsk. The stuff I could do with $3-4 grand….

  • GoProto

    Most companies do. Its about more than the savings too. People are less likely to get distracted and involved in outside activities when they know there is someone else who will have knowledge of it and could possibly share that knowledge. In this economy, keeping your job by not doing anything stupid may be Rule #1.

  • zeroman

    in China, India, Russia or another country, he would be paraded off to jail, face trial, get sentenced and have his assets taken away if he were guilty. the least described about what would happen in the Middle East the less horrific this post.

    only in America can swindlers like Stanford, Madoff and greedy CEOs steal, take huge bonuses and get away with home or luxury jails sentences that would make them blush with impunity.

    the wonders of a system we call capitalism.

  • zeroman

    well nortel was the only company who let their sales guy travel on business days. others had to leave on the weekend and go home on a friday red eye.

    you would think the pampered (or as argued well rested for business) would work harder, smarter and faster.

  • zeroman

    well no sharing but there were different policies. some people were forced to stay in shabby hotels while the self promoted rockstars stayed in the expensive ones. at least one thing Nortel was good at for its employees.

  • freqmgr

    Geee, do you think that if the SEC and/or investors go after this punk (Mike Z) he might even loose that Lake Forrest home? Maybe, if not in jail, end up in an apartment in some not so nice part of Chicago? Probably not….even Madoff's wife was allowed to keep some things. Everyone else looses…only he wins.

  • Nortel_Employee_2009

    FYI ….Whocanisue.com

    for people who are comtemplating ways to recover their losses :-)

  • zeroman

    um isnt that what I said. typical nortel manager you, just re-write the same thing another way to sound intelligent.

  • exnt_x_2

    Jailed Ponzi king Bernard Madoff is apparently working his way up the prison pyramid scheme.

    The New York Post reports that Madoff, who’s serving 150 years in a North Carolina federal prison, got into a prison-yard fight last week – and won.

    “I didn’t think Bernie had it in him,” an unidentified inmate told the paper. “He was really aggressive, and the other guy was in shock that (Madoff) fought back.”

    The U.S. Bureau of Prisons declined to confirm or deny the Post’s report.

    But eyewitnesses told the paper that the altercation between 71-year-old Madoff and another elderly inmate started as a heated argument about the stock market.

    The other prisoner eventually shoved Madoff, who responded by pushing his attacker down and hovering over the man “red faced and glaring,” according to the Post. The paper said the attacker then scampered off, winning Madoff some “cred” among other inmates.

  • freqmgr

    Hmmmm, no, not really a typical Nortel manager. Unlike some others I'm off the sinking ship, have moved on and started a business and have positive cash flow….

  • tryn2makealivin

    Starting next week mailings will go out with offers. There are three scearnios 1. have a job going to Avaya 2. transfer to NBS(Temp) 3. no position you have been tapped

    There were earlier emails from Avaya but I don't think these were offers but interest shown by Avaya to try and keep top talent on board while they were handing out the 15Million Retention to only execs

  • less

    I move NT pay creditors in alphabetical order, starting with A and ending with yep Zee.

  • zeroman

    good for you. same here.

  • OzNortel

    I cant believe how gullible you lot are when it comes to cost savings.

    You think its ok to share a room with a work colleuge? Why???

    I dont live in a hut, and I dont share my house with some moron from work, so why should I put up for anything less when I travel on company time? If they ever told me to stoop that low I would tell them to take their job and stick it. Even if you bent over and let them do this to you, do you think they would temper the exec bonuses or salaries. No wonder you lot get fleeced in NA

  • GoProto

    I never said it was ok. I didn't give any opinion about it. I just shared what companies do and why. If you do want my opinion, I wouldn't like it either BUT I would rather do this and stay employed then have people, including myself, fired and laid off. I don't think it's stooping low, or bending over. It's simply not personal, it's business. I work hard so that I can enjoy my leisure time when I am not at work. Who gives a sh*t about sharing a room while on out of town work? I would rather pick other battles, such as why the books were re-stated and re-stated and re-stated, on top of being cooked by Dunn, and why people were consistently lied to by Z and Company, up to and including that they were NOT going to go into BK protection, and all the crap that has happened since. These are way more material to the Notell saga then which company has employees sharing rooms. Maybe if NT paid more attention to the big issues, instead of booking people private rooms, they would still be in business today, such as Cisco, and Avaya, who has happily employeed people who share rooms!

  • davidrose

    Great work Mark. I've emailed the judge at the Delaware bankruptcy court objecting to Mike Z's claim. Don't know whether it will have any affect, particularlly as the judge has the same surname as Dennis Carey (The Honourable Kevin J. Carey). If they are related there may be a bit of backscratching to contend with !
    Some others that were made redundant in the UK with no payments have followed my lead on this so hope it will, at least, give some hassle at the hearing.

  • davidrose

    There is absolutely no doubt that Nortel was one of the greatest companies to work for in the world, at one time.
    I enjoyed 18 years with Nortel, unfortunately I worked for them for 19 years so you've probably worked out that the last year was not so good !

  • gregbrown123

    Mike Zafirovski's house 1291 N Green Bay Rd , Lake Forest IL

    In case you want to send a Christmas card…

  • gregbrown123

    Mike Zafirovski's house 1291 N Green Bay Rd , Lake Forest IL

    In case you want to send a Christmas card…

  • TwitterCounter for @markevans
  • Seeking Alpha Certified