Mike Z. Takes a Pension Haircut…Kinda

In the wake of Nortel’s plan to reduce its annual costs by a cool $100-million a year by switching to a defined-contribution pension plan from a defined-benefits plan, CEO Mike Zafirovski has stepped up to the plate as well by volunteering to pare back his “special annual pension” by 29% to $355,000 a year instead of $500,000. It’s a nice gesture but likely not the kind of thing that will win over the troops. Mike Z. is still eligible for Nortel’s regular pension plan and has several million stock options in the kitty so it’s not like he’ll be struggling in his retirement. It should also be noted that ex-CEO Bill Owens is receiving a annual pension of $1.18-million from Nortel even though he only spent 18 months as CEO. Over the past couple of years, Nortel has done a terrific job making sure his senior executives head off into the sunset with sweet packages.


6 Responses to “Mike Z. Takes a Pension Haircut…Kinda”

  1. Long-Term Employee Says:

    The long-term grunt employees are happy to sacrifice for the benefit of their executive leaders (may their names be praised) because.. gosh darnit… they deserve it.

  2. nortel Says:

    all for one, one for all??…:)

  3. MoneyGames Says:

    29%? Chump change for Mikey….and the employees are the chumps! Mike, if you want to make an impression give it all back!

    And Jeffers moved Nortel into the buy column because employee morale was up? Who is the Jeffers guy talking to? Jeffers needs to ask for a copy of the next employee satisfaction survey results.

  4. 17 years (so far) Says:

    Mike Z can keep his pension….as long as the stock hits $25 (no reverse splits please) in the next 10 years.
    On another note, I find it facinating that stock options can adapt and grow lungs after being under water for soooooo long.

  5. Walking with a limp Says:

    Note to 17 years (so far)

    A 4 to 1 and possibly 10 to 1 reverse split before the end of 2007 was approved by shareholders at the last meeting.

    The pension is only the first thing to go ….

  6. still_wondering Says:

    Wow…..if the senior guys get away wit so much n there is so much money..am wonderin why those lower in the ladder are bearin the wrath !!

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