Courts allow $7.3M in Nortel bonuses

The payouts would go to eight executives, not including the CEO

Bankruptcy courts will allow Nortel Networks to pay as much as US$7.3 million in incentive bonuses to eight key executives after creditors of the bankrupt communications equipment maker dropped their objections, the company has confirmed.

The bonuses would be part of a larger $23 million incentive plan, covering 92 employees, that was approved March 1. Creditors had objected to the bonus plan for the eight executives and asked for financial projections for 2009. After those were provided, they dropped the objections.

CEO Mike Zafirovski is not one of the eight executives, according to Nortel. Both the U.S. Bankruptcy Court for the District of Delaware and the Ontario Superior Court approved the payouts. Nortel is based in Brampton, Ontario.

In addition to the incentive plan, Nortel also has a $22 million retention bonus plan for other employees that the courts also approved on March 1.

The vast majority of Nortel employees are already on a quarterly incentive plan aligned with the company's short-term goals, according to a Nortel statement.

"These additional programs are largely goals-based programs which will ensure that employees, management, and our creditors are all aligned behind a common set of goals," Nortel said.

Plagued by a financial scandal and years of losses, amid growing competition in its key service-provider equipment business, Nortel declared bankruptcy on Jan. 14. Last November, it announced a $400 million cost-cutting plan that included cutting 1,300 jobs, closing facilities and selling assets.

Join the PC World newsletter!

Error: Please check your email address.

Tags nortelmoney

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?