Nortel chief flying in corporate jet as company files for bankruptcy protection

Rick:

I disagree that this is "sensational journalism". Just look at the following facts:

1. Most of the flights shown in Brad's piece are for personal use. 22 to Chicago, 16 to Toronto, and 7 to Pontiac. That's a WHOPPING 45 out of 58 flights!

2. Most of these are simple one legged commute trips. There are numerous direct commercial flights between Chicago and Toronto, probably one leaving every 30 minutes. These are also two airports that are easy to get through, especially if you have the top tier frequent flyer privilege. This is NOT a case where he needs to squeeze in a number of customer visits in a tight schedule.

3. Look at the timing of these flights. He knew full well that they are in trouble in September. When they laid off people in Oct/Nov, they knew there was a possibility for bankruptcy and those poor employees not getting any severances that they were promised. Yet, this personal exuberance continues. What does this say bout his personal integrity, values, and judgment?

4. Nortel GREEN hypocrisy - Mike Zee touted how green their equipment is. Yet he jetted around in one of the biggest private jet. Look at the type of jet he is using for personal commute. It's one of the biggest ones you can get. It is significantly costlier and burns more fuel than the other private jets that he could have chosen.

On top of all these, there is already a huge controversy about his unwillingness to reduce his compensation, despite calling from many different sources including recently a professor in McGill.

Why does this guy feel that he is entitled to all these, when he sent multiple messages to employees apologizing that the company cannot pay any severances, pension benefits anymore?

One thing that is not well known also, is that in addition to the Pension Plan deficit, employees who have hundreds of thousands of dollars saved up in the company's Deferred Compensation plan has lost their entire savings in that account due to bankruptcy. So, either directly or indirectly, Mike Zee's leadership has resulted in deep financial impact, to the tune of hundreds of thousands of dollars in many cases, on individual employees. I am not kidding when I say that the human toll on this restructuring is extremely high. Most employees feel that Mike Zee is making the employees pay for the restructuring, while he himself is enjoying a multi-million salary and a private jet for personal use.

If you put all that in context, it is extremely poor taste and disregard of human decency that Mike Zee is exhibiting in his behaviors.

Just do an informal poll around the Nortel office. The feeling of betrayal is so deep that, the only hope to make the employees "believe" again is to see this man go. HE HAS GOT TO GO!

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Get a grip!
0 Up Down
By Rick (not verified) on Thu, 01/22/2009 - 4:38pm.

I think this is sensationalistic journalism. The U.S. hearings with the automakers made similar fuss over the CEOs traveling in this manner.

This is how business is done - these executives travel the world and keep insane schedules. The use of a corporate jet is often required by corporate policy intended to protect the executive from the threat of violence or abduction.

The claims made protesting this travel show a lack of understanding of how business functions.

Now - all of that said, I think the performance of the management team at Nortel has earned them a trip to unemployment office.

Rick, if your claim is true, why did Nortel ground the jet? According to your claim, Mike Z will now be vulnerable to the threat of violence or abduction. Additionally, according to your claim, how can Nortel's business function with Mike Z's jet grounded, since I obviously have a lack of understanding of how a business functions? I mean, if this is how business is done, how will Nortel get its business done now? Finally, looking at the jet's activity logs, yours truly is not too impressed with the work hours Mike Z keeps (I personally don't have a "beef" with clock watchers, just those with private jets at their disposal). Finally, I find it absolutely amazing that it "appears" the CEO of Nortel did not travel to Ottawa, RTP and other Nortel locations over the last 5 months.
Brad Reese
BradReese.Com Cisco Refurbished

Rick,

According to the article above, 38 out of 58 trips with the company jet were either to the office or home.

do you think he does not feel same at home?

R

Ahh, but this executive appears to be using it as a private limousine to and from home...look at the track of where the plane has been...travel the world??? not at all...travel the continental US? hardly...ostentatious overkill...if it has resulted in awesome deal-making, giant sales increases..by all means yes that would justify...but that sadly is not the case...what it is a case of, the numerous short hops illustrate quite well, is yet another CEO's self-interest...self-importance...self-hyped ego...yep, that's what this is all about. If he were serious about NT he would have MOVED to Toronto a long time ago AND he'd be working for a $1 a year until NT turned around...but nope...grab-grab-grab-n-go-Mike.

As for the unemployment office...the sad thing is along with the golden parachutes in all likelihood the execs WILL draw unemployment as well (gotta have tips for the pilot and ground crews which is about what unemployment will cover)