& cplSiteName &

Nortel's Roth Rakes It In

Light Reading
News Analysis
Light Reading
3/13/2002
50%
50%

How good a CEO was Nortel Networks Corp.'s (NYSE/Toronto: NT) John Roth? So good that he is being paid more not to be at work than he was getting when he ran the company.

Just a few days before former Nortel CEO Roth announced his retirement back in May 2001, he received a $250,000 annual raise, according to documents Nortel filed with the Securities and Exchange Commission (SEC).

For the first four months of 2001, Roth’s base salary was $1,250,000 per year. This climbed to $1,500,000 a year on May 1, 2001. Roth officially retired as Nortel's president and CEO on November 1, 2001. Since then he has been on a yearlong leave of absence, during which he will continue to draw his entire salary.

In 2000, Roth earned $6.7 million in cash, including $1,104,167 in base salary, a bonus of $5.6 million, and miscellaneous pocket-change of $33,199 (see 2001 Top Ten: Fat Cats).

Roth, now Nortel's vice chairman, became Nortel's president and CEO in October 1997, and while he held that title Nortel shrank in size by about 28 percent and lost about 50 percent of its market capitalization.

When Roth took the top job, Nortel had a stock price of around $105 a share and employed more than 72,800 people. By the time he retired, Nortel was down to around 52,600 employees, and its stock price was less than $6 a share.

In the summer of 1997, Nortel's market capitalization was hovering around $32 billion. Now it is about half that.

Along with many other telecom chief executives in the late 90s, Roth's cheerleading about the Internet's exponential growth contributed to many of the unsustainable investments in the telecom market. Moreover, the vendor financing and overblown acquisitions that took place on his watch helped usher in a long and humiliating restructuring period at Nortel (see Nortel Buys: Reaping the Whirlwind? and Nortel: Can This Company Be Saved?). "He misread so many of the signals the market gave him in 2001," says Ariane Mahler, an analyst at Dresdner Kleinwort Wasserstein.

Frank Dunn, Roth's successor, began 2001 with a base salary of $475,000 a year (see Nortel Swings Axe, Switches CEOs). By November 1, he'd been bumped up to $825,000 a year to reflect his promotion, according to Nortel's SEC filings.

Nortel declined to discuss Roth's compensation. "I'm not going to dissect the numbers. They are what they are. They speak for themselves," says Nortel spokesman David Chamberlin.

— Phil Harvey, Senior Editor, Light Reading
http://www.lightreading.com

(40)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 4   >   >>
OptixCal
50%
50%
OptixCal,
User Rank: Light Beer
12/4/2012 | 10:48:07 PM
re: Nortel's Roth Rakes It In
Why should an announcement like Nortel's Roth getting this huge payout upset us? Aren't we all pretty much resigned to the fact that this sort of thing continually happens? On the surface, doesn't this smack a bit of "Enron-gate"? Big execs getting big payouts and leaving just before the fit hits the shan? come on! As an unfortunate investor in Nortel I can only hope the shedding of this "exec's-utive" weight will eventually help.
kcufde
50%
50%
kcufde,
User Rank: Light Beer
12/4/2012 | 10:48:05 PM
re: Nortel's Roth Rakes It In
roth made money, by acquiring companies which are non standards, and people who worked hard , walked out home, why did they paid him salary when he was at home , to make the stock to 5 dollar, if this continues, stock will come to 5 cents
Lopez
50%
50%
Lopez,
User Rank: Light Beer
12/4/2012 | 10:48:05 PM
re: Nortel's Roth Rakes It In
I guess at 15 or so engineers out of 50K were laid off so Roth could continue to collect his paycheck. What a wanker.
Star
50%
50%
Star,
User Rank: Light Beer
12/4/2012 | 10:48:05 PM
re: Nortel's Roth Rakes It In
Thats BS, This jabrone, Roth will continue to drive into the sunset with one of his millions and I said millions of cars he owns, laughing and lying all the way to the bank !
The old geyser is a prime example of all that's wrong with NT and their old school mentality.
I saw this old buck speak 2 years ago to a standing ovation by NT workers only to have them turn on him a year later and beat him down like a government mule.
Today it's clear he's just a Jackass and my NT stock is on a roll in my bathroom waiting to wipe my mudhole...........
optical_man
50%
50%
optical_man,
User Rank: Light Beer
12/4/2012 | 10:48:04 PM
re: Nortel's Roth Rakes It In
Ever see the Poseiden Adventure?
Remember the part where the small group of refugees sees the unending line of poor souls headed towards the bow, and the Preacher says "but the bow is under water, wake up Man, you're headed towards certain death!" and no one listens?
Someone in the refugee group said "we've got to do something to help them!", the Preacher says "forget it, they're aleady dead".

Does anyone who was there (at Norty) see the connection now that time has passed?
optical_man
50%
50%
optical_man,
User Rank: Light Beer
12/4/2012 | 10:48:04 PM
re: Nortel's Roth Rakes It In
Good for John.
He wanted that old fuddy duddy to make a right angle turn, but many of the employees at Norty were too entrenched in their mindsets to change with him.
He tried. He tried darned hard. If you've heard the speeches you know.
If you tried to make a difference and were frustrated, you cashed out your options, and left for somewhere else.
If you stayed and lost it all, and now want to complain, you missed your timing, you should have stood up at a company conference and said "my department is holding us back and I want to change it!".
You didn't did you...
Why? You wanted to become part of the country club set, and figured if you sat quietly long enough, a factor of number of years served would promote you.
Nortel has it's issues, but who doesn't. They are an incumbent and will press on eventually.
Good for John, now quit complaining.
lucidity
50%
50%
lucidity,
User Rank: Light Beer
12/4/2012 | 10:48:04 PM
re: Nortel's Roth Rakes It In
OptixCal -
I must respectfully disagree with you. The "we've all been screwed/will be screwed again by the fat cats" attitude doesn't serve anyone except said fat cats. The management of any corporation must be held accountable for their poor decisions and the effect those decisions have on their employees and investors. Sitting back and sighing "not again" only encourages those who (ab)use the system for their own financial gain to continue their behavior unabashed.
mrcasual
50%
50%
mrcasual,
User Rank: Light Beer
12/4/2012 | 10:48:03 PM
re: Nortel's Roth Rakes It In
Good for John.
He wanted that old fuddy duddy to make a right angle turn, but many of the
employees at Norty were too entrenched in their mindsets to change with him.
He tried. He tried darned hard. If you've heard the speeches you know.
If you tried to make a difference and were frustrated, you cashed out your options,
and left for somewhere else.


I did exactly what you suggested. Worked for me. I don't have any beefs with JR getting all his cash and options when Nortel was going up. He gets paid for peformance, and until the crash Nortel was performing exceptionally based on the only metric that matters at the CEO level, i.e. stock price.

However, I do have a beef with JR getting a 20% raise after presiding over a year that even the most generous of souls would call a disaster. Let's be serious, if any of us had had a similar year, evaluated against our performance metric, we probably would have been fired, not given a 20% raise.
Star
50%
50%
Star,
User Rank: Light Beer
12/4/2012 | 10:48:03 PM
re: Nortel's Roth Rakes It In
Hey Jackass, don't talk about preechers to me...
I went to mine and asked him to forgive me for buying NT stock. I also asked him to prepare last rights for NT.
As far as boats go, that boat at NT has sailed.
Star
50%
50%
Star,
User Rank: Light Beer
12/4/2012 | 10:48:03 PM
re: Nortel's Roth Rakes It In
My only mistake was listening to my fearless leader, "Uncle Buck" better known as JR and drinking the NT Kool-Aid.....

As for your comments, "pull your lips away from JR's ASS and just shut the hell up !"
Page 1 / 4   >   >>
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
No Stopping Cable's Ethernet Gains

12|9|16   |     |   (0) comments


Vertical Systems' Erin Dunne explains why US cable operators, which now command a record-high 26% of the Ethernet market, will keep boosting their share.
LRTV Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (1) comment


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Small Arctic ISP Caches Netflix in New Way
Mari Silbey, Senior Editor, Cable/Video, 12/7/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.