How Much Is Nortel's CEO Making This Year?

With Nortel (NRTLQ.PK) not holding an AGM this year and not issuing a proxy circular - as far as I can tell - there hasn’t been much information or discussion about how much CEO Mike Zafirovski is getting paid this year as the company struggles to escape from bankruptcy protection.

In 2008, Mike Z. received a salary of $1.28-million, as well stock awards of 3.7-million, option awards of $3.7-mllion and other compensation of $378,466. In total, he made a cool $9.68-million. Keep in mind that Mike Z. also has a sweet for-life pension plan of $366,000 that will kick in shortly after he leaves Nortel. (More information in Nortel’s 10-Q filing)

So, the question is how much Mike Z. is making in 2009. After watching the company plummet into bankruptcy protection based, in part, due to bad strategic decisions, how much are Mike Z. and his senior management team going to be rewarded this year?

Is his salary and the other salaries of senior executives being reduced so they can share the pain? Has Nortel tweaked the annual incentive plan when it comes to senior executives? Keep in mind, this is separate from the Key Executive Incentive Plan (of which Mike Z. is not participating) and the Key Employee Retention Plan.

How come Mike Z. hasn’t taken the symbolic plunge and decided to work for a $1 in 2009. I know this is something I’ve raised before but given how much money Nortel has paid Mike Z. over the past three years, given thousands of hard-working people have lost their jobs, and given the overall economic climate, taking a $1 salary (a la Cisco’s (CSCO) John Chambers and Chrysler’s Lee Iacocca) would be a significant goodwill gesture.

With all the incentive plans in place at Nortel, it’s hard not to get the impression a lot of people are going to be compensated and rewarded for steering Nortel out of bankruptcy protection, or orchestrating the sale of key assets. That hardly seems fair given how much pain senior management has inflicted. Chart from here.

Comments

[serge9:]

My Portfolio is down 90% ( a loss of over 500,000.00) believe it or not and for the last 10 years, all Nortel Ceo, exec, name them have worked to fill their pockets, they can lie, contradict what they announce, with no one to answer too, what mark is saying is absolutely true, and what ever Mr. Z and his Exec are doing, is just stretching time, milking the Cow (Nortel) to get every single penny they can get out of it, if they really wanted to save this company, they could have done so, long time ago, but they procrastinated to bring the company to it's knees while filling their pockets, I heard some people say, the MR. may be is rewarded by competitors to get Nortel out of the game, his results may confirm so, the Irony is no can question him or question the board, this is a corrupted Gang with no Core Value or integrity, if they were, they would have done what other CEO’s done, and work free to show their integrity and will to participate in bringing the company back to life after all they earned Tens of millions of dollars to bring the company to where it is right now , but they will not do it, they do not really care for saving Nortel, They came to Nortel with one IDEA in MIND, Destroy Nortel slowly and make it seems Normal,
if there is a GOD they will pay back, if there is no GOD, it is Too bad, no one is there to bring those criminals to Justice

May 26 03:04 PM

[JBGeuting@a...:]

I agree unrestrictedly with Marc Evans and with the comment above:
Mr. Mike Zafirowski should work for 1 symbolic $ to show his integrity.I am only a German Highschool Teacher, but not a nobody what the number of Nortel-stocks held by me is concerned. I lost 120,000,00 € so far.
Janbernd Geuting
[e-mail]

May 28 07:50 AM