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

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

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.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?