Nortel: 'Tis the Season for More Bonuses
While the United States was still recovering from Thanksgiving dinner, Canada was boiling at the news that Nortel Networks Ltd. has approved another round of executive bonuses.
Nortel plans to pay 72 executives an aggregate US$7.5 million, CBC News reported Thursday, citing internal Nortel documents. The new bonus plan was approved in the fall.
Fourteen of the executives are due to get $500,000 or more. Among them is treasurer John Doolittle, who's essentially running things in the wake of ex-CEO Mike Zafirovski. His total compensation is getting bumped to $1.68 million from $560,000 last year, CBC reports.
This plan appears to be separate from the bonus plan filed with U.S. bankruptcy court in March, which included a proposal for a Key Executive Incentive Plan to pay $23 million total to 92 people, and another $22 million earmarked for 880 employees.
Zafirovski wasn't included in those numbers, but he found another way to (further) annoy Nortel's employees: He's a Nortel creditor, with a $12 million claim. (See Mike Z Wants $12M.)
— Craig Matsumoto, West Coast Editor, Light Reading