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Nortel posts $2.1 billion Q4 loss, pushes bonus plan
Nortel Networks, currently under bankruptcy protection and in the midst of broad restructuring, reported fourth-quarter earnings today that included a $2.1 billion loss fed by a $1.2 billion write-down, a major tax-related charge and a 15 percent slide in revenue. The company also reported a $5.8 billion net loss for the full year of 2008.
Revenue from both Nortel's Carrier Networks unit and its Metro Ethernet division actually improved from the third quarter of 2008 to the fourth quarter, though both units saw revenue dip on a year-over-year comparison. Those units constitute two of the four business groups that Nortel's plans to move ahead with as it works to emerge from bankruptcy.
Meanwhile, Nortel is pushing forward with a plan to spend about $45 million on bonuses for its top 1,000 executives, in what has been described as an incentive to get them to stick with the company through the most challenging time in its history.
The Canwest News Service reported that only about $3 million in retention bonuses will be spent across the company's other 19,400 employees in North America. Nortel filed its plan with its U.S. bankruptcy court late last week, and the plan is expected to be the subject of bankruptcy court discussion in both the U.S. and Canada later this week.
For more:
- Here's the Nortel earnings press release
- Canada.com has this Canwest News Service post
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Comments
Posted by Diane Urquhart | March 24, 2009 - 1:47pm
Henry Juroviesky of Juroviesky and Ricci LLP and independent financial analyst, Diane Urquhart, are hosting a webinar on Wednesday, March 25, 2009 at 3:00 PM EDT to update you on our plan to accelerate and maximize the recovery of the termination and severance pay owed to Nortel Canadian terminated employees and to facilitate the creation of additional value for the Nortel estate. We will answer questions about our no 'up-front fee/retainer’ and clarify any confusion you may have about our legal plan.
Reserve your Webinar seat now at:
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Please register at least 15 minutes before the scheduled time of the webinar.
Posted by Anonymous | March 3, 2009 - 11:17am
Sure, cancel the bonuses. Let the execs leave. By not keeping them there, the company will lose even more continuity. The $45M can then be used to power a bit more severence for the thousands more that will be laid off as a result, though I have to say: anyone who works for a company led by these guys deserves their fate. And if those laid off plead that they had no other choice but to work there, then they are using the same excuse those who supported Hitler did. Time for everyone over there to have their buckwheats.
Posted by Anonymous | March 3, 2009 - 1:22am
Their friends on wall Street gave themselves generous bonuses with tax payers bailout money, so why shouldn't the top executives at Nortel give themselves millions in bonuses? I mean besides the fact they are losing money, and on the verge of bankruptcy. They must be worth it; just ask them, they will tell you. The only company that would hire them is one that wants to screw it self into the ground, just like Nortel has done.
Posted by Anonymous | March 2, 2009 - 11:38pm
It is wrong that Nortel execs are paying themselves with fat bonuses while laying off thousands of hard working, dedicated employees. They are the ones that brought about the demise of this once great company.
Shame on you Nortel execs. You have managed to go from low credibility to no credibility.
Posted by Anonymous | March 2, 2009 - 11:37pm
It is wrong that Nortel execs are paying themselves with fat bonuses while laying off thousands of hard working, dedicated employees. They are the ones that brought about the demise of this once great company.
Shame on you Nortel execs. You have managed to go from low credibility to no credibility.
Posted by Anonymous | March 2, 2009 - 9:18pm
I don't believe there is a big demand in the marketplace for executives that for the past 5 years have taken a great company to bankruptcy. They certainly don't need bonus incentives to stay. No one anywhere else will hire them anyhow.
Posted by Anonymous | March 2, 2009 - 12:42pm
I find it funny that Nortel needs to keep its so-called executives around with bonuses. Where are they going to get a job in this climate anyways? They aren't going anywhere...
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