What a stand up guy. Makes me proud to work for him.
Disgruntled Ex Nortel
· 1 year ago
I'm confused,..outsourcing the current positions to lower cost locations will save the corporation money,..yet that savings incurred is rolled back into the executives salaries? Now the real question is, how much money would the company save if MikeZ and his facegrabbing cronies had their positions relocated to lower cost locations?
protosphere
· 1 year ago
Nortel is on EDC welfare who is there to assist in exporting product as they export jobs instead...
many
· 1 year ago
Good gracious. This would be sadly funny if I did not have friend working for this company. They (the BoD and shareholders) just don't get it. They have been sold a bill of goods and a compensation package that rewards mangement for slowly bleeding them to death.
I have only one piece of advice for current employees; RUN AWAY.
protosphere
· 1 year ago
Pigs at the trough for a company losing money.
What a bad jokes in poor taste this company's arrogance continues to display with board members still sitting on the voting audit committee to approve huge lottery sized pay practices. So many still there remain too, new auditors replace those of long standing after so many insider only CFOs. Even the SEC finally wants progress reports on the repair of their unreliable accounting and numbers worse every time counted, as the RCMP lay criminal charges in this saga. It is endless...
Ask any lawyer in the Toronto area about their pay practices to see. This CEO makes more than BCE's for heavens sake and they paid a premium for him after he defrauded his past employer on several written occasions. What a shoe in as he promotes than fires his pal who also got an increase.
Has anyone also noticed how these guys reward financial innovation and post profits? Triple profits after settlement followed by revisions they downplayed to double / then mark-to-market profits due to tanked settlement shares thanks to these revisions, then exchange rate profits as operations just keep on a tanking...
As if calling 20 bucks extreme 10X reverse split a buying opportunity was not enough, they claim they can manage a much larger company before axeing thousands more in their death spiral. Endless hype followed by endless contradictions strikes me as ongoing lies after settling one of the largest fraud settlements on earth..
But hey! Bonuses all around! <hickup>
Endless contradictions makes me question the ultimatum settlement as no better reason to show why we do not negotiate with terrorists.
Pre extreme 10X reverse split, Nortel called $3.05/shr. "fair" settlement as it trades at 87 cents today, before the defrauded are mailed their cheques and as even a green team's pay increases for a company losing money.
What's changed? For the better anyways...
This saga has to be seen to be seen to believed.
Huh
· 1 year ago
Turning off vending machine lights saves Rciahrdson $4000 per year.
Conrad Black
· 1 year ago
This Canadian charity seems to pay well. Where can I apply for a job?
Break It Up
· 1 year ago
I see from the SEC report that Dion J., Steve S. and Peter Currie all got hugh severance pay outs. I wish I would have been fired from Nortel....
Z Z is not top
· 1 year ago
As a Nortel employee this pisses me off. .. GET THE COMPANY INTO PROFIT IF YOU WANT A BIG PAY INCREASE!!!!!!!!!!!!!!!!!!!!!! How much longer will this go on before they decide that a change at the top is needed? The clock needs to be ticking loudly if it is not already.
kls
· 1 year ago
Anyone want to buy some network gear.
flabbergasted
· 1 year ago
Keep up the good work Mike... tanking stock price, diminishing revenues, eroding market share in most product lines not to mention basement level employee moral.
I'm glad to see that the money we're saving by slashing jobs is being spent in the places it's most needed.
Disgruntled Ex Nortel
· 1 year ago
not to mention the money saved by decimating the pension plan and benefits for retirees,..oh wait, that money went towards the Motorola lawsuit,..
The Board of Directors needs to wake up from their slumber and see that they are being taken for the proverbial ride, and 2nd,..they need to get Jean Monty back, he's the one that actually turned the company around when another American Idiot with high powered connections had run it into the ground, yet John Roth reaped all the benefits.
Nortel watcher
· 1 year ago
Now we know what the "ACCELERATION" theme in Vegas was all about. Forget about boosting morale among the sales force for the Americas. This was a facade for the executive leadership to get even more compensation in 2008 than they did in 2007.
And what a tab they ran up only to stick it to the shareholders in the end.
stan
· 1 year ago
Nortel sucks, Im off to Alcatel
Steve
· 1 year ago
that's like going from the Lightning to the Panthers...have fun with that.
Observer
· 1 year ago
You can't really blame Mike Z. Its the system that's the problem. Most executive compensation is a legal binding contract that has payouts regardless of company performance. Now you know why experts keep saying there is a shortage of leadership talent in the world. Compensation is about as much an indicator of performance as stock price is of company performance. In the executive world, contracts win and in the stock market hedge funds do. If there were any method to the last 25 or so years corporate madness, why we are on the verge of the longest recession since 1981 ?
Nortel is just a reflection of the greater problems which are everywhere now. The ides of March are upon us. Good luck to all.
many
· 1 year ago
Yes I can and I do blame Zafirovski.
True leadership would be saying; "I am not going to take a salary, or I will take my salary in options because I believe in this place and what I am doing". How much R&D could be supported if Zafirovski's and Hackney's and a few other over paid executives took this tact?
Standing around muttering buzz words and platitudes makes you a leader just as much as standing in a garage makes you a car.
Observer
· 1 year ago
The truth of the matter Nortel made a profit of about $150M. The tax credit writeoff was something that was inherited by the current management. I'd say you can only blame the people that signed the agreement with Mike Z. I point the finger at the board of directors. Instead of rewarding him every year, they should have waited 3 years and then let his all of stock based compensation fully vest. At the end of day the joke is always on the shareholders and employees. This applies to most companies. As I said in my previous post, its a problem just about everywhere. Where' s the Canadian government in all of this ? Providing an EDC credit facility and then allowing Nortel to ship jobs overseas shouldn't be allowed. What about VANOC and Bell Canada ? I don't live in Canada but I would be outraged if I were paying taxes that provided these kind of sweet deals to Nortel.
Managment
· 1 year ago
Not sure why you all are complaining? You had clear instructions: "Lead", "Follow" or "Get Out of the Way"
Being in Management I made my own rules, to hack with what Z says.
Lead - Ha ha !! You make me laugh. Try to lead and I will make sure I shut you down. I have been working at Nortel just right after dinosaurs went extinct. I am expert at avoiding any accountable situation. You do not know anything; you are new kid on block. You do not know how things work around here. Just shut up and give me my weekly report.
Follow - Although I am not sure where to go, I just want a troop behind me. You know it looks good. I just need to keep showing my management that my position is important and that I am adding real value to Nortel. We both know that I am not adding any value but keep your mouth shut or I will give additional projects like 48 hours case resolution.
Get Out of the Way - Are you kidding me? I am getting too good of salary and bonus to quit and I am also waiting for my package (wink wink). You can leave. I am going to hire new grad who is willing to work lot more hours than you will and also not question my leadership (not really sure what that is but I like the word)
cheapgetsreplaced
· 1 year ago
all of u who work at the lower rungs making lower salaries will be taken out first. it is cheaper to get u out the door.
some fat senior person will then take your job.
Novice Investor
· 1 year ago
.... Nortel has "Mr. Z" when it needs "Mr. A +" .... need a young Bill Gates or Lee Iacoka or Warren Buffett ....
For all Nortel Management over $100,000 per year "ZERO" salary and all stock compensation ($12 strike price ?) would be an honourable thing to do .... it's such a GREAT company ....
Same for Scotia Capital, Gus Papageorgiou (was $31 target now $11.00) 416-863-7552 and TD Newcrest, Chris Umiastowski (was $28 target now $17.00) 416-983-3599 .... get some PAIN !!
flabbergasted
· 1 year ago
stan if you can hook me up at alcatel as well let me know. I'll take either that or Cisco. Chambers may make 5 x what Z does, but at least he gets results.
It is sad things are heading this way because as Novice says, it is a great company unfortunately it's the middle management idiots that are ruining it.
Observer
· 1 year ago
For those folks who Alcatel/Lucent is their next stop, they still have to go thru a restructuring and will likely let many employees go in Nortel America before France as at the end of the day its a French company and its much easier to shed workers in North America. Alcatel/Lucent is about where Nortel was in 2002. More layoffs and further writedowns ahead.
Another Nortel Watcher
· 1 year ago
All cynicism aside, this is a shocking action at the board and cabinet level. These salary and other compensation increases defy common sense. And that is a sure sign that the core is rotten.
Like Many, I absolutely hold MZ accountable. He's way past his honeymoon period. hasn't he already had a significantly longer tenure than Frank Dunn? I will give MZ some credit for some necessary housekeeping actions that have improved margins, but I hold him accountable for two fatal mistakes: 1) Incredibly bad hiring at the cabinet level...nobody has a clue what to do next, and 2) failing to put appropriate focus on growth and just assuming that clowns like Hackney could 'accelerate the business'.
Stan - don't go to Alcatel. They're in no better shape. Pat Russo has the same flaws as MZ. Alcatel is in the same downward vortex...it will just take a little longer to become apparent because they're a bigger company. Go for Cisco or Nokia (not Nokia-Siemens). These two companies are investing wisely and are showing that the problem with telecom isn't the segment, it's the Nortels.
Observer
· 1 year ago
I think when its all said and done even the Cisco's and the Nokias of the world will be slashing their revenue forecasts. IT and Carrier budgets are going to be pared further. When economic activity slows down with a sharp drop in consumer spending carriers will be forced to pare back spending. And finally once the US slows down, the world will follow. There will be no decoupling.
Nortelhand
· 1 year ago
Looks like Nortel has about $ 3 Billion more of this type of liability. I wonder if Mike Z will write them down 4Q of 08? His reasons were the change in the dollar value, and we all know the dollar value is going to change more in 08, in the same direction. I guess we should expect this to happen again. I also assume it will come with another 2100 lay offs of the "dead wood" and the relocation of another 1000 jobs.
Humm, a rosy picture is not forming for the near term future of Nortel.
The big problem still is clients will look at Nortel and wonder if it will be around in the next 2, 3, 5 years, etc…. Lets not make it too easy for sales to peddle Wimax to the world (joke).
exNortelhand
· 1 year ago
nortelhand dead wood never leaves or gets let go. they always survive. as for nortel on the resume - who would hire people that develop laggard products and run the business into the ground so efficiently.
total liability is 7 billion. you can continue working long hours for your ceo to get bigger bonuses. all you can do is say yes master.
Novice Investor
· 1 year ago
John Roese's Blog CTO Nortel
.... WE'RE ON A JOURNEY ....
The one point from our announcement that might be worth highlighting in order to clarify some confusion around the loss we reported is related to the deferred tax asset write-down that Nortel took. Without the tax write-down Nortel actually had net income of $154 million. I’m not a tax expert, so in order to explain it I thought I’d copy here the explanation that Peter Look, our VP of Tax, shared with employees in response to a number of questions that came in on our employee blog:
“What are the Canadian deferred tax assets? In Canada, Nortel has about $1 billion of unused R&D tax credits, $1 billion of tax losses from previous years and about $0.5 billion of future tax deductions not claimed on any tax returns yet. We “wrote-down” a portion of them in Q4.
Could we have avoided a write down? No, we’re required every quarter under accounting rules to look at how much we can reasonably expect to use and over what timeframe we think we can use them. A lot of factors come into play in making that judgment. Please note that this is just “accounting” and that the tax benefits are still available for us to use as future conditions warrant.
Why now? There were a convergence of events in Q4 that interacted negatively with each other. Among them were 1) a 3.5% tax rate cut enacted in Canada in late-December which stretched the time horizon to use the R&D credits and 2) a continued strong Canadian dollar versus the US dollar (about .85 in beginning of year versus close to par at end of year) that devalued the stream of future Canadian taxable income (expected to create the tax to be sheltered by the assets), because our Canadian business unit earns a bunch of its income in US dollars.”
Bottom line: We’re on a journey to transform this company to once again be the great company that it was, and we’re making progress. I came to Nortel about 1.5 years ago to be part of what I continue to believe will be a tremendous transformation story. And, I’m as committed now as I was then to helping drive that transformation.
WE_ARE_FAMILY
· 1 year ago
(CHORUS:) We are family I got all my brothers with me We are family Get up everybody and sing
Everyone can see we're together As we walk on by stepping over everybody (FLY!) and we fly just like birds of a feather I won't tell no lie (ALL!) all of the people around us they say Can they be that close Just let me state for the record We're giving money in a family dose
(CHORUS x2)
Living life here is fun and we've only just begun To get our share of the world's delights (HIGH!) high hopes we have for our own future With our retirement goals in sight (WE!) no we don't get depressed Here's what we call our golden rule Have faith in you and the things you want You can't do no wrong This company is our family Jewel
(REPEAT CHORUS TO FADE)
Nortelhand
· 1 year ago
Novice Investor,
Got it that Nortel is on a journey. But the issue still remains, the same debt is on the tax books (I realize no real loss it is just funny money) for the sum of $3 Billion. I don’t think anyone thinks the dollar is going to get stronger in 2008, so why wouldn’t Mike Z and team do the same thing is 4Q2008? I assume it would have the same devastating results to the price per share.
Got any ideas to make this a happy thing?
IamCanadian
· 1 year ago
I'm not a tax expert. But to me (an average Joe Canadian) a write-off for tax purpose meaning there are some incentive gains. For example, I have my own business and I'm entitled to write off any expenditures like leasing an expensive luxury SUV, fancy iPhone and services, useless accountant services ... if these tax write-off are not considered tax credits then why bother? and why now not later? Someone explains to me about frequent Air miles and I dont get ịt
exNortelhand
· 1 year ago
airmiles 101 explained
you have airmiles but do not use it because there is no opportunity to do so. you keep saving for that fantastic trip. then one day they send you a letter that you use them or loose them because on account inactivity. so you still cannot get a ticket but you have to use it. then you just buy any junk that you can get for the number of miles you have.
now translate to tax credits.
you have tax losses that can be subtracted. but this is kept until major profits are made because you expect to do so. now that never happens. so one day you wake up to the fact that they will expire. in this context, a merger, a breakup or bankruptcy. then the easiest thing to do is clean the books and settle them by taking out huge losses. in accounting its called throwing out the bathwater by maximizing all the bad news in one quarter. however, the writing on the wall is that the baby is going to get thrown out too.
many
· 1 year ago
Soooo, I think I've got it. They are on a journey. They are using their air miles to pay for "VPs of Tax" and exorbitant executive salaries with >20% raises. Experienced employees are so much useless baggage.
Not An Accountant
· 1 year ago
(REPEAT CHORUS TO FADE)
Lol....
R Cat Do
· 1 year ago
As an employee of Nortel I'm appalled !!!!! I think they we're feeding us cocaine or another dug at the Sales Conference! --- we bit, we believed! now this ---- we employees (if we were in the top 10%) received a 3.4% increase max !!!
As for investments !!!!! You have people in development designing products and intrfaces 5+ years old... no committment and most products slide and the people in these groups continue to ask the sales force for statistics about what the martket needs.... I say kick these useless people out... they have no idea of what they're doing...
All Comments
Now the real question is, how much money would the company save if MikeZ and his facegrabbing cronies had their positions relocated to lower cost locations?
I have only one piece of advice for current employees; RUN AWAY.
What a bad jokes in poor taste this company's arrogance continues to display with board members still sitting on the voting audit committee to approve huge lottery sized pay practices. So many still there remain too, new auditors replace those of long standing after so many insider only CFOs. Even the SEC finally wants progress reports on the repair of their unreliable accounting and numbers worse every time counted, as the RCMP lay criminal charges in this saga. It is endless...
Ask any lawyer in the Toronto area about their pay practices to see. This CEO makes more than BCE's for heavens sake and they paid a premium for him after he defrauded his past employer on several written occasions. What a shoe in as he promotes than fires his pal who also got an increase.
Has anyone also noticed how these guys reward financial innovation and post profits? Triple profits after settlement followed by revisions they downplayed to double / then mark-to-market profits due to tanked settlement shares thanks to these revisions, then exchange rate profits as operations just keep on a tanking...
As if calling 20 bucks extreme 10X reverse split a buying opportunity was not enough, they claim they can manage a much larger company before axeing thousands more in their death spiral. Endless hype followed by endless contradictions strikes me as ongoing lies after settling one of the largest fraud settlements on earth..
But hey! Bonuses all around! <hickup>
Endless contradictions makes me question the ultimatum settlement as no better reason to show why we do not negotiate with terrorists.
Pre extreme 10X reverse split, Nortel called $3.05/shr. "fair" settlement as it trades at 87 cents today, before the defrauded are mailed their cheques and as even a green team's pay increases for a company losing money.
What's changed? For the better anyways...
This saga has to be seen to be seen to believed.
I'm glad to see that the money we're saving by slashing jobs is being spent in the places it's most needed.
The Board of Directors needs to wake up from their slumber and see that they are being taken for the proverbial ride, and 2nd,..they need to get Jean Monty back, he's the one that actually turned the company around when another American Idiot with high powered connections had run it into the ground, yet John Roth reaped all the benefits.
And what a tab they ran up only to stick it to the shareholders in the end.
Nortel is just a reflection of the greater problems which are everywhere now. The ides of March are upon us. Good luck to all.
True leadership would be saying; "I am not going to take a salary, or I will take my salary in options because I believe in this place and what I am doing". How much R&D could be supported if Zafirovski's and Hackney's and a few other over paid executives took this tact?
Standing around muttering buzz words and platitudes makes you a leader just as much as standing in a garage makes you a car.
You had clear instructions: "Lead", "Follow" or "Get Out of the Way"
Being in Management I made my own rules, to hack with what Z says.
Lead - Ha ha !! You make me laugh. Try to lead and I will make sure I shut you down. I have been working at Nortel just right after dinosaurs went extinct. I am expert at avoiding any accountable situation. You do not know anything; you are new kid on block. You do not know how things work around here. Just shut up and give me my weekly report.
Follow - Although I am not sure where to go, I just want a troop behind me. You know it looks good. I just need to keep showing my management that my position is important and that I am adding real value to Nortel. We both know that I am not adding any value but keep your mouth shut or I will give additional projects like 48 hours case resolution.
Get Out of the Way - Are you kidding me? I am getting too good of salary and bonus to quit and I am also waiting for my package (wink wink). You can leave. I am going to hire new grad who is willing to work lot more hours than you will and also not question my leadership (not really sure what that is but I like the word)
some fat senior person will then take your job.
For all Nortel Management over $100,000 per year "ZERO" salary and all stock compensation ($12 strike price ?) would be an honourable thing to do .... it's such a GREAT company ....
Same for Scotia Capital, Gus Papageorgiou (was $31 target now $11.00) 416-863-7552 and TD Newcrest, Chris Umiastowski (was $28 target now $17.00) 416-983-3599 .... get some PAIN !!
It is sad things are heading this way because as Novice says, it is a great company unfortunately it's the middle management idiots that are ruining it.
Like Many, I absolutely hold MZ accountable. He's way past his honeymoon period. hasn't he already had a significantly longer tenure than Frank Dunn? I will give MZ some credit for some necessary housekeeping actions that have improved margins, but I hold him accountable for two fatal mistakes: 1) Incredibly bad hiring at the cabinet level...nobody has a clue what to do next, and 2) failing to put appropriate focus on growth and just assuming that clowns like Hackney could 'accelerate the business'.
Stan - don't go to Alcatel. They're in no better shape. Pat Russo has the same flaws as MZ. Alcatel is in the same downward vortex...it will just take a little longer to become apparent because they're a bigger company. Go for Cisco or Nokia (not Nokia-Siemens). These two companies are investing wisely and are showing that the problem with telecom isn't the segment, it's the Nortels.
Humm, a rosy picture is not forming for the near term future of Nortel.
The big problem still is clients will look at Nortel and wonder if it will be around in the next 2, 3, 5 years, etc…. Lets not make it too easy for sales to peddle Wimax to the world (joke).
total liability is 7 billion. you can continue working long hours for your ceo to get bigger bonuses. all you can do is say yes master.
CTO Nortel
.... WE'RE ON A JOURNEY ....
The one point from our announcement that might be worth highlighting in order to clarify some confusion around the loss we reported is related to the deferred tax asset write-down that Nortel took. Without the tax write-down Nortel actually had net income of $154 million. I’m not a tax expert, so in order to explain it I thought I’d copy here the explanation that Peter Look, our VP of Tax, shared with employees in response to a number of questions that came in on our employee blog:
“What are the Canadian deferred tax assets? In Canada, Nortel has about $1 billion of unused R&D tax credits, $1 billion of tax losses from previous years and about $0.5 billion of future tax deductions not claimed on any tax returns yet. We “wrote-down” a portion of them in Q4.
Could we have avoided a write down? No, we’re required every quarter under accounting rules to look at how much we can reasonably expect to use and over what timeframe we think we can use them. A lot of factors come into play in making that judgment. Please note that this is just “accounting” and that the tax benefits are still available for us to use as future conditions warrant.
Why now? There were a convergence of events in Q4 that interacted negatively with each other. Among them were 1) a 3.5% tax rate cut enacted in Canada in late-December which stretched the time horizon to use the R&D credits and 2) a continued strong Canadian dollar versus the US dollar (about .85 in beginning of year versus close to par at end of year) that devalued the stream of future Canadian taxable income (expected to create the tax to be sheltered by the assets), because our Canadian business unit earns a bunch of its income in US dollars.”
Bottom line: We’re on a journey to transform this company to once again be the great company that it was, and we’re making progress. I came to Nortel about 1.5 years ago to be part of what I continue to believe will be a tremendous transformation story. And, I’m as committed now as I was then to helping drive that transformation.
We are family
I got all my brothers with me
We are family
Get up everybody and sing
Everyone can see we're together
As we walk on by stepping over everybody
(FLY!) and we fly just like birds of a feather
I won't tell no lie
(ALL!) all of the people around us they say
Can they be that close
Just let me state for the record
We're giving money in a family dose
(CHORUS x2)
Living life here is fun and we've only just begun
To get our share of the world's delights
(HIGH!) high hopes we have for our own future
With our retirement goals in sight
(WE!) no we don't get depressed
Here's what we call our golden rule
Have faith in you and the things you want
You can't do no wrong
This company is our family Jewel
(REPEAT CHORUS TO FADE)
Got it that Nortel is on a journey. But the issue still remains, the same debt is on the tax books (I realize no real loss it is just funny money) for the sum of $3 Billion. I don’t think anyone thinks the dollar is going to get stronger in 2008, so why wouldn’t Mike Z and team do the same thing is 4Q2008? I assume it would have the same devastating results to the price per share.
Got any ideas to make this a happy thing?
you have airmiles but do not use it because there is no opportunity to do so. you keep saving for that fantastic trip. then one day they send you a letter that you use them or loose them because on account inactivity. so you still cannot get a ticket but you have to use it. then you just buy any junk that you can get for the number of miles you have.
now translate to tax credits.
you have tax losses that can be subtracted. but this is kept until major profits are made because you expect to do so. now that never happens. so one day you wake up to the fact that they will expire. in this context, a merger, a breakup or bankruptcy. then the easiest thing to do is clean the books and settle them by taking out huge losses. in accounting its called throwing out the bathwater by maximizing all the bad news in one quarter. however, the writing on the wall is that the baby is going to get thrown out too.
Lol....
As for investments !!!!! You have people in development designing products and intrfaces 5+ years old... no committment and most products slide and the people in these groups continue to ask the sales force for statistics about what the martket needs.... I say kick these useless people out... they have no idea of what they're doing...