What irony (hypocrisy?)! Roth walked away with half the company (for doing a half-assed job) and Dunn has brought them back from the brink (for now), and the BOD kicks sand in his face (not that he's underpaid; at least those options will keep him warm at night).
As Johnny "Pocket Rocket" Pacquet would say: "Go figure."
Rob
03/10 17:37
Nortel Networks Denies CEO Frank Dunn a Raise or Bonus in 2002
By Scott Lanman
Brampton, Ontario, March 10 (Bloomberg) -- Nortel Networks Corp., North America's largest maker of telephone equipment, denied a raise and bonus last year to Chief Executive Officer Frank Dunn, who failed to stem sales and share-price declines.
Dunn, 49, earned a 2002 salary of $825,000, the same annual base pay he was given upon promotion to CEO in November 2001. Nortel's board denied bonuses to Dunn and five other top executives for the second straight year, according to the company's proxy statement filed today at the U.S. Securities and Exchange Commission.
Nortel's sales last year dropped 40 percent to $10.6 billion and its share price tumbled 78 percent to $1.61 because customers trimmed spending on network gear. Dunn said in January that the company will have a profit, excluding certain expenses, by the second quarter because of lower costs. Nortel has had five years of net losses in a row.
Shares of Brampton, Ontario-based Nortel fell 8 cents to $2.07 at 4:17 p.m. in New York Stock Exchange composite trading. They've declined 64 percent since Dunn, Nortel's former chief financial officer, was promoted to replace the retiring John Roth.
Nortel granted Dunn 750,000 stock options last year, down from 1.75 million in 2001. While the 750,000 options are valued at C$3.9 million to C$9.89 million ($2.67 million to $6.75 million) based on projected increases of 5 percent to 10 percent a year for 10 years, they are worthless until Nortel's share price reaches C$8.27 ($5.65), the proxy filing said.
Nortel's Canadian shares fell 16 cents to C$3.04 in Toronto.
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