Does anyone think before they come up with catchy corporate plan names? There's something disturbing about a 'Limited Success Incentive Plan'. Is the new plan an incentive for success, but limited in some way? Or, are the new executives being incentivized for limited success? :)
Yes, I realize it is caused by the concatenation of NNL and their 'SIP'. But, I'll bet it becomes Leno fodder anyway...
Entry into Material Agreement
Item 1.01 Entry Into a Material Definitive Agreement
On May 30, 2005, the joint leadership resources committee of the boards of directors of the registrant and Nortel Networks Limited (NNL) approved, and recommended to the boards of directors of the registrant and NNL for approval, the corporate performance objectives for 2005 under the Nortel Networks Limited Success Incentive Plan. The corporate performance objectives for 2005 are revenue, management operating earnings before taxes, cash flow, financial accountability and certain leadership qualitative performance objectives:
leadership in ethics and integrity and revenue from new business. The financial accountability objective, which was originally recommended by management and approved by the joint leadership resources committee and the boards of directors of the registrant and NNL in June 2004, now includes, among other things: (i) Progress on SAP implementation; (ii) Sarbanes Oxley Compliance; and
(iii) addressing remediation items identified in the Summary of Findings and of Recommended Remedial Measures of the Independent Review submitted to the audit committees of the boards of directors of the registrant and NNL by Wilmer Cutler Pickering Hale and Dorr LLP. The financial accountability metric only applies to the Vice-Chairman and Chief Executive Officer and the President and Chief Operating Officer and their direct reports.
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