Nortel Insider – by Desk Jockey

The view from one Desk Jockey

Nortel management hires expensive consultants to let them decide on bonuses

with 10 comments

executives_moneyIn yet another stunning example of management’s corruption and their total willingness to absolve themselves from responsibility, today we have learned that Nortel executives have petitioned the court to hire Mercer “pay consultants”.

These consultants will cost the company anywhere from $225 to $800 an hour for their ridiculous services. In a time where severances have been cut and employees told to save every dollar, nickel and dime for the sake of the company this is yet another slap in the face of those most loyal to the company. First it was the news of Mike Z’s outrageous private jet usage at the cost of $1 million a month (yes $1 million, don’t believe that “incremental cost” BS) even after Nortel filed for Ch.11, and now this! How much more corruption will we learn of?

Here’s what the PRopaganda dept. had to say about it:

A Nortel spokesman added: “In order to execute a highly complex restructuring program, Nortel has sought counsel from experts with specific experience working with companies who have successfully managed their business while under creditor protection.”

Translation: We don’t know what we’re doing, but don’t worry we can throw money at the problem.

But wait, it gets worse:

The company says in the filing that Mercer has “substantial knowledge of (Nortel’s) current operational condition,” which could help it design an incentive plan for key employees.

So, the executive hires these outrageously priced consultants to let them determine how much the bonus should be for the “key employees” e.g. the executives themselves! Yet another devious trick to continue to profit off the downfall of this company!

But this is all part of their plan to wash their hands of any blame. Just like they blamed the decision to remove severance on the “financial advisors” that told them to do so, they will now happily accept huge bonuses even as Nortel flounders through BK protection and say “Hey, we didn’t decide who got bonuses, the consultants did!

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Written by Desk Jockey

February 24, 2009 at 7:56 pm

10 Responses

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  1. You are right, this is an attempt to put consultant lipstick on the pig of bonuses to execs. Mercer will do what they are told and recommend that Mike, Joel, Richard, Dennis, etc get retention bonuses due to their “unique importance to Nortel at this time of crisis”. Makes me want to puke.

    kram n

    February 24, 2009 at 8:17 pm

  2. “Reality Strikes”….

    What an amazing story! Is someone from Hollywood (sorry, outsourced to Bollywood) writing the script for the executives and the BoD? Can it get any crazier?

    I’ll answer my own question: I think it can get crazier. Don’t be surprised if one of the $800/hour Mercer “anal–ysts” suddenly determines that z-man needs his corporate jet back and that Nortel can afford it (since they know so much about Nortel’s financial condition).

    z-man and his executive minions must be finding this quite entertaining. This employee (for how much longer?) is deeply distressed.

    Reality Strikes

    February 24, 2009 at 9:24 pm

  3. Wow. Truly cowards, that is Mike and BoD included.

    Der Doppelgänger

    February 25, 2009 at 6:28 am

  4. could have not said it better myself.

    Niccolò Machiavelli

    February 25, 2009 at 10:06 am

  5. send all your questions to the email used @ the Z GIS … intcom@nortel.com

    no idea about to do

    February 25, 2009 at 12:58 pm

  6. Some pigs are more equal than others…

    Orwellian

    February 25, 2009 at 1:05 pm

  7. who are we to hire some one to decicde what kind of money to pay for overtime/a big contract.
    these guys are problems wating to be cleaned up by the government.
    people they need to hire like myself to talk good about your company for a year>>>>>>. @$10,000,000.
    ha ha ha ha ha ha aha haha aha aha ha aha ah.lol<,,,,,
    fellow bloggers lets see how long it take for them to get back. until then f them till the pay.

    nichoussouthern

    February 25, 2009 at 4:24 pm

  8. […] a comment » Well, it looks like the rumors were true. Hot on the heels of a ridiculous plan to profit off the downfall of the company, Nortel has announced further […]

  9. […] Nortel management hires expensive consultants to let them decide on bonuses In yet another stunning example of management’s corruption and their total willingness to absolve themselves from […] […]

    Top Posts « WordPress.com

    February 26, 2009 at 7:11 pm

  10. Excellent post Desk Jockey – very insightful. I am glad you continue to be a voice to expose the corruption of the management team. I can only hope that this can trigger some sort of ‘revolt’ to cut off these practices (KEIP/KERP) before they actual go through.

    Impartial_Observer

    March 2, 2009 at 12:40 pm


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