The mystery – at least to me – about why Nortel CEO Mike Zafirovski sold some shares earlier this month has been solved. According to the company, Mike Z. was given 2.265 million restricted stock units on Nov. 15, 2005 in accordance to the Nortel 2005 Stock Incentive Plan. The RSUs vest in five equal annual installments beginning on Nov. 15, 2006, and are settled in Nortel common shares upon vesting. The shares that Mike Z. sold are required by Nortel under the plan in order to pay withholding taxes at the time of the vesting of the RSUs. Of course, some of you already knew that but now it’s official.
Why Zafirovski Sold Some Shares