Ex-Nortel CEO says company owes him $12 million

As reported yesterday in FierceTelecom's sister publication FierceWireless, the recently departed Nortel CEO Mike Zafirovski has filed a claim that the Canadian company owes him more than $12 million in pension, bonus and severance payments. This latest development comes as other former Nortel employees have also filed their own lawsuits to get access to pension payments. Every claim will be examined alongside the other claims made in Nortel bankruptcy court proceedings, including related suppliers and creditors. However, none of the claims will be either acknowledged or paid out.

Not surprisingly, former Nortel employees were outraged. "I was amazed and I'm frankly staggered by his effrontery," Tony Marsh, spokesman for a group called Nortel Retirees and Former Employees Protection Canada, told the Canadian Press.

After deciding that the company would sell off key assets instead of restructuring, Zafirovski resigned from Nortel in August. Last week, the company sold its profitable Ethernet assets to Ciena.

However, there was one ray of sunshine for Nortel. The beleaguered vendor reached a settlement with the U.S. Internet Revenue Service over a $3 billion tax claim.

For more:
- see this Canadian Press article
- see this Ottawa Citizen article

Related articles
Nortel, IRS headed to trial over $3B tax bill
Ciena crafts deal for Nortel's Ethernet assets
Nortel's Zafirovski departs as company posts $274M loss
Canadian government won't block Ericsson-Nortel deal
Nortel hit with $3B tax claim by IRS

Suggested Articles

Like most telcos, there are challenges ahead for CenturyLink, but one area it can bank on is its fiber network both here and abroad.

With the surge of data-hungry gamers battling for the best experience, how will your network rise to the challenge?

Listen now.

It's going to be fun watching the epic battle unfolding between hedge fund giant Elliott Management and massive conglomerate AT&T.