Nortel Networks Corp. said Tuesday that it has cut its 2003 reported profit by more than 40 per cent and announced that 12 executives will refund $8.6-million (U.S.) in bonuses tied to that year's financial performance. The company also said that five directors - including chairman Lynton Wilson - won't stand for re-election.
Here is a list of who is leaving the board and who will join.
New directors joining the board of Nortel:
John MacNaughton: The 59-year-old CEO of the CPP Investment Board, which manages the investments of the Canada Pension Plan, is retiring this month and will join the Nortel board at its annual meeting this year. Mr. MacNaughton has headed the CPP Investment Board since its creation in 1999, and was previously a 31-year career executive with brokerage firm Nesbitt Burns, the investment banking arm of Bank of Montreal. He was president of the brokerage firm from 1994 until his retirement in 1999. Mr. MacNaughton has a BA in economics from the University of Western Ontario.
Richard McCormick: The 63-year-old resident of Denver, Colorado, is the former CEO of telecommunications company US WEST Inc. He retired as chairman of the company in 1999 and is now a director of HealthTrio Inc., United Technologies Corp., Wells Fargo and Co., and Unocal Corp. From 1994 to 2003, Mr. McCormick was a director of the parent holding company of United Air Lines Inc., which filed for Chapter 11 bankruptcy protection in 2002.
Harry Pearce: Mr. Pearce, 62, lives in Bloomfield Hills, Mich., and was chairman of the board of Hughes Electronics Corp. - now called The DIRECTV Group Inc. - from 2001 to 2004. The company is engaged in an array of telecommunications businesses including digital television entertainment, broadband satellite and network services, and global video and data broadcasting. He was also a director and vice-chairman of General Motors Corp. from 1996 to 2001, and is still a director of Marriott International Inc. and MDU Resources Group Inc.
Directors leaving the board of Nortel:
James Blanchard: The former governor of Michigan, who now lives in Beverly Hills, Mich., has been a Nortel director since 1997. He was previously a member of the U.S. House of Representatives and a former U.S. ambassador to Canada. Mr. Blanchard, 62, has been a partner in the law firm of DLA Piper Rudnick Gray Cary since 2002, and also serves on the boards of Bennett Environmental Inc., Brascan Corp., Enbridge Inc., LDMI Communications Inc., and Teknion Corp.
Yves Fortier: The prominent Montreal lawyer, who is co-chairman of the firm of Ogilvy Renault, has been a director of the company since 1992. He was Canada's ambassador to the United Nations from 1988 to 1992. Mr. Fortier, 69, is also chairman of Alcan Inc., and sits on the boards of Hudson's Bay Co., Nova Chemicals Corp. and Royal Bank of Canada.
Guylaine Saucier: A chartered accountant, Ms. Saucier, 58, joined the Nortel board in 1997. She is a former chairman of the Canadian Broadcasting Corporation, and is also a director of Altran Technologies SA, AXA Assurances Inc., Bank of Montreal, Petro-Canada and Tembec Inc. She also headed a joint committee on corporate governance, which reported in 2001 on proposed reforms for the Toronto Stock Exchange's corporate governance guidelines.
Sherwood Smith: Mr. Smith, who lives in Raleigh, NC, has been a Nortel director since 1994 and has reached the board's retirement age of 70. He is the former chairman of Carolina Power & Light Co. and later served as chairman emeritus of the company. He is also a trustee of The Northwestern Mutual Life Insurance Co.
Lynton "Red" Wilson: A Nortel director since 1991, Mr. Wilson, 64, took over as chairman of the company in 2001. He is the former CEO of BCE Inc., which previously owned a controlling stake in Nortel, and is also chairman of the board of CAE Inc. and a director of DaimlerChrysler AG.
Janet McFarland