Nortel Boots Three Top Execs, Delays 1Q Nos.4/28/2004 9:17 AM Eastern
Nortel Networks Corp. fired its CEO, chief financial officer and controller Wednesday, AP reported.
The telecommunications-equipment vendor also said its first-quarter earnings report would be delayed.
According to AP, Nortel is reviewing the past three years’ financial results, and the company said it would restate its 2003 earnings, cutting profit for the year in half.
CEO Frank Dunn, CFO Douglas Beatty and controller Michael Gollogly were all fired for cause Wednesday, Nortel told AP.
Four more senior financial executives were placed on paid leaves of absence pending review by an audit committee, AP added.
William Owens has been named CEO. A Nortel director since 2002, he had been chairman and CEO of satellite company Teledesic LLC since 2003, according to AP.
Both the Securities and Exchange Commission and the Ontario Securities Commission have launched formal probes of Nortel's accounting, the company said earlier this month.