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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Jack Zahran who wrote (21269)	5/22/2003 4:58:57 AM
From: elmatador	Respond to of 21876

Former Lucent CEO in new consultant role By Jonathan Moules in New York FT.com site; May 15, 2003 Lucent Technologies has agreed to pay its former chairman and chief executive Henry Schacht $55,000 a month to help the lossmaking telecommunications equipment maker work out how to cut costs and resolve litigation disputes. Mr Schacht has already retired as Lucent's chairman twice, having returned to run the New Jersey-based company in October 2000 as the demand for telecoms equipment was collapsing. In his new role as senior advisor, Lucent has promised Mr Schacht "all reasonable accomodations you may require", according to a company filing with the Securities and Exchange Commission. This includes office space, a mobile phone and an additional $15,000 payment for tax and investment advice. Lucent, which is the largest US telecoms equipment business and owner of the prestigious Bell Labs research facility, said the agreement with Mr Schacht was "appropriate" for a senior advisor. "We believe we are receiving valuable services," a company spokesman added. Mr Schacht's new role began on March 1 and includes an option to extend the agreement into next year by mutual agreeement. Lucent has already cut its workforce by 67,500 employees to 38,500 staff in an effort to return to profits after 12 consecutive quarters of losses. It aims to shave another 3,500 positions from the payroll by the end of the year. John Challenger, CEO of executive search firm Challenger, Gray & Christmas, said: "This is certainly a generous compensation." However, he added that the expense would be justified if Mr Schacht helps cut payroll costs and litigation expenses over and above his own wage. Mr Schacht retired as chairman of Lucent in February and the job was added to the list of titles held by Patricia Russo, who has been the company's president and chief executive officer since January 2002. Mr Schacht is also an outside director on Lucent's board.