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Dunn's Done With Nortel

Light Reading
News Analysis
Light Reading
5/26/2004

Frank Dunn may have been fired as CEO of Nortel Networks Ltd. (NYSE/Toronto: NT) last month, but his official involvement in the company's governance didn't end there, according to a new filing with the Securities and Exchange Commission (SEC) (see Nortel Fires CEO).

Although he vacated the CEO office on April 28, it wasn't until May 21 that Dunn resigned from the Nortel board. The SEC filing states simply: "On May 21, 2004, each of Nortel Networks Corporation (the “Company”) and Nortel Networks Limited (the principal direct operating subsidiary of the Company) received the resignation of Frank Andrew Dunn as a director of each respective company, effective May 21, 2004."

With Nortel under intense financial scrutiny at present, why was a CEO whose contract was "terminated for cause" still a board member for 23 days after his dismissal? And did he attend any meetings?

Nortel's response fails to shed any light on Dunn's extended stay. In an email statement it said only that, "In accordance with new and expanded 8-K rules under U.S. securities legislation, we filed a current report relating to the resignation of Frank Dunn as a director of each of Nortel Networks Corporation and Nortel Networks Limited."

Nortel has had a miserable month, and the black cloud hanging over it doesn't look to be shifting any time soon (see Nortel Gets Federal Subpoena, Nortel Shares Fly South, and Nortel Silent on Baffling Bonuses).

Nortel's share price closed up five cents yesterday at $3.53.

And in case you're wondering, we checked to see if Bernie Ebbers is still on the MCI board. He isn't.

— Ray Le Maistre, International Editor, Boardwatch

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ragho
ragho
12/5/2012 | 1:43:01 AM
re: Dunn's Done With Nortel

... enough time to cash in his options and restricted shares, don't you think?. I can't wait to see the 10-Q to see how he made out!!
networking_legend
networking_legend
12/5/2012 | 1:42:51 AM
re: Dunn's Done With Nortel
You read my mind. I was thinking the extact same thing.
litemyfiber
litemyfiber
12/5/2012 | 1:42:44 AM
re: Dunn's Done With Nortel
Har to believe LR missed an opportunity to dish more dirt on Nortel, but I actually had to go elsewhere for the facts. Shocking, that journalistic mould thing is beginning to affect their objectivity!!!

The truth is Nortel execs were barred from trading, and Frank's options were taken away.

http://biz.yahoo.com/rc/040517...

http://biz.yahoo.com/bw/040517...

Guess we gotta find something else to bitch about

Oh the humanity
OptixCal
OptixCal
12/5/2012 | 1:42:40 AM
re: Dunn's Done With Nortel
Great piece of detective work, litemyfiber. too bad the so-called industry watchdog couldn't have done the same, huh?
ragho
ragho
12/5/2012 | 1:42:30 AM
re: Dunn's Done With Nortel

Well, that's good news (good find, BTW). But it doesn't look like they didn't receive the cease order until after May 17th, which could have given Dunn enough time to sell his limburger cheese.

What bugs me still is that why didn't the board kick his ass out after firing him as CEO?.
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