Two of Nortel’s former long-time executives – Pascal Debon and Brian McFadden – have been sent along with nice severance packages. Debon, who was a "special advisor" will receive a lump sum payment of $295,000 on June 24 and bi-weekly payments of $22,692 through Dec. 28 of 2007 while McFadden, who was chief research officer, will get his base salary for the next two years and 10 weeks of vacation pay and other benefits. Sweet!
Archive for the ‘Compensation’ Category
So Mike Z. gets a $1.2-million annual salary just for showing up. Then, he’s eligible for a bonus worth $1.8-million to $3.6-million if certain performance benchmark are reached. Then, there’s the five million stock options and 2.25 restricted stock options he received last year, which are currently worth nearly $18-million. And if Mike Z. sticks around for five years, he gets a $500,000 a year pension after he turns 60. If that’s doesn’t come across as sweet, Nortel also disclosed it will pay ex-chief legal officer Nick De Roma, who quit last year, a monthly salary of $43,833 until Sept. 2007 as well as giving him 100% annual salary payment as an “incentive award”. And you thought, you were in the wrong line of work! It’s nice to see Nortel has enough money to be throwing around cash – and that doesn’t include the $500M+ it will pay to make those pesky class-action lawsuits go away. For more details on the what’s what, here’s the SEC document
It hasn’t take long for ex-Nortel CEO Bill Owens to get back on the board bandwagon. Owens is one of five designees to Sprint’s board that will own its local communications business. You may remember Nortel rewarded Owens – as only Nortel can do – when he resigned many of his directorships to take the CEO position. Imagine that, you get your dream job in the private sector and you’re given $4.5-million to leave behind all those board jobs.