This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nortel CEO Leaving on 'Logical' Note

TORONTO ( TheStreet) -- Mike Zafirovski, the CEO of Nortel Networks (NT), is stepping down, having reached a "logical departure point" with the beleaguered telecom equipment maker.

Zafirovski's departure follows a turbulent few months that saw the company enter Chapter 11 bankruptcy and begin carving off its assets. Nortel announced plans to liquidate earlier in the summer, spelling the beginning of the end for the 127-year-old company.

In a statement released Monday, the Canadian company confirmed Zafirovski's immediate departure as well as announcing that the company's board will be reduced from nine members to three.

The news is not exactly out of the blue. Last week. Zafirovski told the Ottawa Citizen newspaper that he planned to leave the company soon, adding that he was close to fulfilling his obligation to Nortel.

"We've reached a logical departure point," said Harry Peace, chairman of Nortel's board, in a statement released Monday. "Mike made a commitment to see the process through the stabilization of the company, sale of its largest assets and the right plans and people to continue operating our business and serving customers."

Former Motorola (MOT) executive Zafirovski was parachuted in to save Nortel in 2005, but has presided over its death throes. The CEO recently told Canadian lawmakers that the credit crunch precipitated Nortel's descent into bankruptcy protection, although the firm had been wrestling with plummeting sales well before its Chapter 11.

Although undoubtedly dealt a difficult hand when he took over at Nortel, Zafirovski's critics have argued that he should have sold off pieces of the company earlier, avoiding a fire sale.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ALU $3.37 0.00%
CSCO $26.00 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs