Dunn's Done With Nortel
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