Nortel Ponies Up for New President/COO
For a guy who spent the past five years involved in real estate ventures, a mega-electronic game center and board positions with high-tech start-ups and non-profit organizations, Nortel sure did its best to lure Gary Daichendt to be its president and chief operating officer. Daichendt will get a US$1-million signing bonus, an annual salary of US$800,000 and 500,000 stock options. In 2006, he will also be eligible for a performance bonus of 125% of his annual salary.
It is interesting Nortel did not disclose the criteria for the performance bonus. This is surprising given the company got itself in a whack of trouble when its former management team led by CEO Frank Dunn cooked the books to trigger a lucrative bonus program. I’m not arguing Nortel needs to offer proper compensation for good talent, but you would think it would be more concerned about optics and transparency when it comes to executive bonuses.
