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August 2010 
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Ex-Nortel CEO Claims More Than $12m From Insolvent Company |
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Pauline Renaud, October 2009 |
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(12 October 2009)
Former Nortel Networks CEO Mike Zafirovski is seeking more than $12m from the insolvent Canadian technology company. According to court documents, Mr Zafirovski is claiming $2.4m, equivalent to 24 months base pay, $3.8m in bonuses under the company’s SUCCESS Incentive Award Plan, $50,000 in insurance benefits, and at least $6m in pension benefits.
“I think it’s safe to say that I was shocked,” said Tony Marsh, spokesman for a group called Nortel Retirees and former employees Protection Canada. “I was amazed and I’m frankly staggered by his effrontery.”
Mr Zafirovski’s claims will be considered along with those filed by other former employees, pensioners, suppliers, trade creditors, financial backers and governments.
But even valid claims may not be paid in full. The company is currently selling its assets to pay off creditors.
Mr Zafirovski stepped down from Nortel in August after four years at the head of the struggling telecommunications giant. Nortel filed for bankruptcy protection in the US and Canada in January. In September, Avaya won an auction to buy a division of the company for $915m. The sale is expected to close by the end of the year.
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