Nortel: Bring Those Bonuses Back7/02/2004 7:01 AM Eastern
Nortel Networks Corp. executives who spent their bonus money might want to check the return policies on their purchases.
The troubled equipment vendor said Friday that if any of those bonuses were improperly awarded due to the restatement of its financial figures going back to 2001, it will seek their repayment, AP reported.
The company paid at least $70 million in bonuses when it reported that it had returned to profitability in 2003, Lehman Bros. Inc. analyst Steve Levy told AP. About $20 million went to executives, and the rest to employees.
A federal grand jury subpoenaed Nortel for several documents in May following the company’s announcement in late April that it fired CEO Frank Andrew Dunn, chief financial officer Douglas Beatty and controller Michael Gollogly and said it would delay its first-quarter earnings report, review the past three years’ financial results and restate its 2003 earnings.