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Summary:

Eight high-level executives at Nortel Networks, the telecoms equipment maker that filed for bankruptcy protection in January, will share a c…

Eight high-level executives at Nortel Networks, the telecoms equipment maker that filed for bankruptcy protection in January, will share a combined $7.3 million in bonuses after bankruptcy courts in the US and Canada approved the payouts on Friday, reports IDG News.

The bonuses are part of a larger $23 million incentive plan, covering 92 employees and a $22 million retention plan for other employees, both of which were granted court approval on March 1.

The latest decision, along with the combined $45 million in already approved bonuses, has not sat well with ex-Nortel employees, thousands of whom were laid off from the Ontario-based telecoms equipment maker without any prospect of severance pay. The Ottawacitizen.com tracked down Russell Schooley, a Texas-based former software developer for the company, who lost his job, health benefits and eight months of severance in January, and was one of 67 former Nortel workers who banded together and hired a lawyer to voice their objections to the bonuses. He told the newspaper, “Where is the fairness in giving these executives a bonus just a few months after they deny other employees their severance pay?

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  1. Giving away bonuses to executives without settling first the company’s obligation to their employees? Indeed, this is really unfair for average employees who really worked hard for the company. Unfortunately, a company needs to make big decision for them not to lose the company’s brain, those are the executives. Admittedly, without their heads working, there will be no success.

  2. payingforfailure Wednesday, March 25, 2009

    @xbox repair

    "Unfortunately, a company needs to make big decision for them not to lose the company’s brain, those are the executives. Admittedly, without their heads working, there will be no success."

    What kind of water-brained, skewed, AIG logic is that? Reward the ones who ran the company into the ground because you need them to be successful???????

  3. Diane Urquhart Wednesday, March 25, 2009

    Henry Juroviesky of Juroviesky and Ricci LLP and independent financial analyst, Diane Urquhart, are hosting a webinar on Wednesday, March 25, 2009 at 3:00 PM EDT to update you on our plan to accelerate and maximize the recovery of the termination and severance pay owed to Nortel Canadian terminated employees and to facilitate the creation of additional value for the Nortel estate. We will answer questions about our no 'up-front fee/retainer’ and clarify any confusion you may have about our legal plan.

    Reserve your Webinar seat now at:
    https://www2.gotomeeting.com/register/585229926

    Please register at least 15 minutes before the scheduled time of the webinar.

  4. xbox repair
    Are you for real? These executives are the same morons who ran the company down to the ground. What happens next after these morons got their bonuses? Chapter 7?

    I felt for those employees who lost their jobs and their severance packages. They deserve better than these NT executives morons.

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