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December 1, 2009

Nortel Board thinks we are still in the dotcom boom times

With layoffs and pension losses, the Nortel Board should be managing the optics of bonus payments to top executives. This is not the dot com boom. We are in a new era where we are haemorrhaging jobs to countries where smart, educated people work hard for far less.

Nortel should have got the bail out not GM because it is new technology while GM is old technology.

Are these Nortel executives so talented? Well, yes, turnaround people are a rare breed so there is probably (hopefully) some truth there. I do wonder if the Nortel Board members have picked up the latest in compensation package trends. Roger Martin, University of Toronto, is saying bonuses should be tied to performance measures like customer satisfaction measures, not to increasing the share price.

How you pay people makes them mercenaries or patriots. Nortel executive is looking rather mercenary.

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