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Nortel Loses $136M in June, But Directors Get $100K Raises

Nortel Networks Corp. (NT) lost yet another chunk of money in June, yet the company has approved giant – and we mean giant – raises for its three remaining board directors.

Nortel, which filed for bankruptcy in January, is required to report monthly finances. The latest report was published this week, for June, a month in which Nortel lost $136 million. Compare that to a loss of $6 million between April 1 and May 2.

Wow.

Nortel is full of “wow”-inspiring moments these days and on top of the financials comes news that the company has given $100,000 raises to two of its board directors – Jalynn Bennett and John McNaughton now earn $225,000 per year, cash. And, David Richardson, board chairman, now gets $325,000 annually.

So, a company that’s losing millions per quarter, won’t pay severance and pension benefits (it’s one or the other), that’s selling itself off in pieces and continues laying off employees is increasing the pay of what is left of a thus-far inept board.

Wow. Just wow.


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