Despite unsteady performance, a new round of layoffs and a plunge in its share price, Nortel Networks raised the total compensation of Chief Executive Mike Zafirovski by about $1.8 million in 2007, regulatory filings show.
Zafirovski, who has been steering the Toronto-based telecom equipment maker through a painful turnaround, saw his total pay rise to $10.1 million from $8.3 million in 2006, according to filings the company made with the U.S. Securities and Exchange Commission this week.
Mike Zafirovski
While his base salary stayed relatively unchanged at about $1.3 million, the total value of stock and option awards rose to $6.4 million from $4.1 million in 2006.
Zafirovski received no bonus during the year, same as in 2006. However, he also received non-stock incentives and "other" compensation, Nortel said.
Nortel's shares have fallen on the Toronto Stock Exchange from C$35.10 (about $35) to C$8.48 ($about 8) over the past 12 months, a decline of 76 percent.
The company continues to deal with slumping demand for the telephone gear it makes, as well as competition from low-cost Asian rivals and an uncertain economic environment.
Earlier this week, it announced a fourth-quarter loss of $844 million, largely due to a $1.1 billion noncash charge related to changes in its Canadian tax profile.
Along with the loss, it
©2007 CNET Networks, Inc. All rights reserved. CNET , CNET.com , and the CNET logo are registered trademarks of CNET Networks, Inc. Used by permission.
