Replacing Nortel's CEO: Is It Possible?

There’s no doubt that Mike Zafirovski has disappointed many people since he became Nortel’s (NT) CEO in 2005.

His performance, highlighted by Nortel’s bankruptcy protection filing, has prompted a lot of people to call for his dismissal. It’s a natural reaction given Nortel’s situation but the question is whether it’s possible to replace him at this point in time, and would anyone credible be willing to become Nortel’s CEO.

So, let’s look at the first question: would it be possible to replace him now?

The short answer is “probably not”. Given the company’s fragile state, it make not make sense to exacerbate the situation by turfing the CEO. The immediate task at hand should be creating a restructuring plan that can salvage something viable so Nortel can continue to some way, shape or form.

Once that process is implemented and the New Nortel is ready to emerge from bankruptcy protection, then you could think about replacing Zafirovski with a fresh, new CEO. Ideally, it would be good to have someone with telecom experience, someone with a track record for success, and someone with an appetite to get involved with a company that has struggled for nearly a decade.

Any suggestions on who that person might be?

Comments

[Red Green:]

The Three Stooges are gone, so we can't get one or all of them. The bigger question is the board of directors. These people have stood by and watched a fine company go down--why would we think that they have the intelligence or courage to pick a decent CEO? Better to get a new CEO if it is possible but who, except a former Nortel person or someone with existing wealth who is not looking to make a buck out of the effort. The whole effort is a bit like locking the barn door after the horse has been stolen. Corporate America and Corporate Canada have not done much lately to inspire confidence--and both governments are even worse. My vote is for Jack Welch or someone like him.

Jan 27 12:19 PM

[Dan Leonida:]

"Any suggestions on who that [CEO, d.l.] person might be?"
======================...
How about Jean C. [Shorty] Monty??!! He's been there before! :o)

Highs, then lows; [Final Edition]
Bert Hill & Vito Pilieci. The Ottawa Citizen. Ottawa, Ont.: Dec 29, 2001.

"BCE Inc. made the biggest splash in the media convergence game by snapping up CTV and The Globe and Mail with hardly a drop of debt. It did it by betting that the price of a huge pile of Nortel Networks stock might fall and made a $4-billion windfall when Nortel stock plunged. BCE is headed by Jean Monty, the Nortel chief executive officer from 1993 to 1997 who groomed John Roth for the top job."

-dan

Jan 27 12:58 PM

[SamDallas:]

First Mike Z can and should be fired right away (the fox and eaten all the hens and you still feel like he is going to be tending the henhouse?...please!). Second in terms of the successor...how about a Donkey (cause even he will do a better job than his predecessor).

Enjoy the coffee...and stop thinking!

Jan 27 06:24 PM

[User 345944:]

Yes,
Ian Craig can do the job

Jan 28 12:59 AM

[NZed:]

If Mike Z leaves, he get 400 k a year for the remainder of his life. Wouldn't that be a sweet deal given the situation he has put many retirees in by stopping all severance packages.

Jan 28 08:43 AM

[tiredofitall:]

The team formed to create the restructuring plan should review strongly if Nortel can afford to remove Mike. He does not have the capability to lead the "new" Nortel or frankly any other company. Maybe there is a reason Motorola 'overlooked' him as a CEO? Regardless, there is waste at the top due to Mike Z and continues to be with his personal influx of mulitple levels of execs and his Six Sigma black belts. Remove that waste and the operating expenses will decrease dramatically.

Jan 28 09:57 AM

[Red Green:]

Ian Craig or Des Hudson--both good managers and honest and knowledgeable. Also, both knew the company when it was a great company and knew the culture that made it good. Mike Z. should get a Jack in the Box franchise and supervise the cooking of the french fries, maybe using UMTS technology.

Jan 28 10:46 AM

[bpg:]

If the focus is going to be on the Enterprise division, then I would recommend Gary Daichendt, however it is unlikely that he would accept given his prior experience with the board. Unfortunate for Nortel that the directors were short sighted. Had Gary been given an opportunity to implement his plan, I believe Nortel and Avaya would be much stronger today as a unified enterprise play. They would also have been better suited to compete with Cisco on select fronts.

Jan 28 11:54 AM

[Nortel Retiree:]

My vote is for Jean Monty, his track record is flawless.He knows the customers, the business and what it takes to turn this once great company around.How about sacking the Board as well!

Jan 28 12:32 PM

[Dan Leonida:]

Jean C. [Shorty] Monty is the one, in my opinion, who started the decline of NRTLQ.PK and he knows it! Corp. Policy 400.05 is what did it IMHO!

-dan


On Jan 28 12:32 PM Nortel Retiree wrote:

> My vote is for Jean Monty, his track record is flawless.He knows
> the customers, the business and what it takes to turn this once great
> company around.How about sacking the Board as well!

Jan 28 09:45 PM