With some time to digest all the exciting Nortel news last week, here's a play-by-play of what really went down:
June 2005:
Gary Daichendt quits as president and COO; board realizes it needs to
replace CEO Bill Owens as soon as possible; board starts CEO
search without Owens' participation.
June 29: Nortel holds seven-hour AGM; elects Harry Pearce as chair; process to hire new CEO apparently officially starts
June 29: Nortel holds seven-hour AGM; elects Harry Pearce as chair; process to hire new CEO apparently officially starts
Oct. 15: Nortel fires Owens after it
secures an employment contract with ex-Motorola COO Mike Zafirovski;
Forget about Owens "retiring" because he had no intention of leaving
soon. Owens, who had been a board member before coming CEO, announces
he will on be on the board.
Oct. 16: Motorola sues Zafirovski for
breaching a non-compete clause. Nortel's recruiter claims it was aware
of the non-compete issues but didn't think they would be a major
problem. Wrong.
Oct. 21: Nortel discloses Zafirovski's
sweet compensation package; makes sure his "golden days" are
comfortable by guaranteeing him a $500K a year retirement package - as
if someone whose already a multi-millionaire needs a $10 million to $15
million retirement package. Zafirovski also gets restricted stocks
units now worth $7.5 million and five million options.
Oct. 24:
All quiet on the Nortel front as Nortel, Motorola and
Zafirovski look at ways to make this "issue"
disappear. Zafirovski prepares to write large check to
Motorola; Nortel prepares to write large check to Zafirovski; Nortel
shareholders watch stock sink towards $4.
It's like a miracle has happened: