Nortel Ex-CEO Entitled To Get $2 Million Lump-Sum Severance

WASHINGTON -(Dow Jones)- Nortel Networks Corp. said Friday that former Vice Chairman and Chief Executive William A. Owens is entitled to a $2 million lump-sum payment equivalent to two years of salary.

The telecommunications equipment maker said in a filing with the Securities and Exchange Commission that Owens is also entitled to an additional special award based on his target bonus and his base salary. Based on the salary used for the calculation of Owens' $2 million payment, the special award is worth $3.4 million.

Under the terms of Owens' agreement, he is also entitled to other benefits including the payment of unused vacation, the accelerated vesting of 2.9 million stock options and the payment of pension benefits over a five-year period.

The Brampton, Ontario, company said it also agreed to indemnify Owens in accordance with the applicable Canadian laws.

Nortel announced in October that Mike S. Zafirovski, former chief operating officer of Motorola Inc. (MOT), would succeed Owens as chief executive in November.

-By Nicolas Brulliard; Dow Jones Newswires; 202-862-1351; nicolas.brulliard@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 3rd December 2005