Nortel eyes Motorola COO as next CEO

NETWORK WORLD NEWSLETTER: OPTICAL NETWORKING
10/24/05

Dear networking.world@gmail.com,

In this issue:

* Nortel picks Motorola President and COO Mike Zafirovski
* Links related to Optical Networking
* Featured reader resource
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Today's focus: Nortel eyes Motorola COO as next CEO

By Jim Duffy

Nortel last Monday surprised the industry by announcing that CEO
Bill Owens will leave in mid-November and be replaced by
Motorola President and COO Mike Zafirovski.

But not so surprising given Nortel's track record over the past
few years, the move might not go smoothly. Motorola filed a
lawsuit the next day against Zafirovski seeking to prevent him
from taking the new job, based on an alleged breach of
non-compete agreements.

Owens' retirement caught industry watchers offguard in that the
65-year-old ex-vice chairman of the Joint Chiefs of Staff
recently indicated that he intended to remain CEO after leading
Nortel through a financial scandal and refocusing the company on
its enterprise network operations.

Owens became CEO after Nortel fired then-CEO Frank Dunn in April
2004 upon determining he helped orchestrate Nortel's bogus
accounting, which forced the company to restate years of
earnings.

During a Webcast press conference, Owens said he was not asked
to step down. He said he "openly and willingly" participated in
the executive search for his replacement, which began after the
company's annual shareholder meeting in June.

Zafirovski, 51, has a 30-year career of leadership with two of
the world's highest-profile corporations, General Electric and
Motorola.

"Zafirovski is well respected by the street, and seen as a
competent manager in the telecom industry," wrote UBS Warburg
Analyst Nikos Theodosopoulos in a bulletin. "Nortel has been in
need of telecom and operational experience in the top role."

Ramesh Kapoor, CIO for the public school system in Virginia
Beach, Va., says he's looking forward to new leadership at
Nortel. Kapoor says the school district has had some problems
with Nortel's Business Communications Manager VoIP gear and he
has not been satisfied with Nortel's support. Kapoor says he
hopes Zafirovski will bring new direction to Nortel.

Features Editor Neal Weinberg contributed to this report.

The top 5: Today's most-read stories

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5. WiMAX just around the corner
<http://www.networkworld.com/nloptical9198>

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To contact: Jim Duffy

Jim Duffy is managing editor of Network World's service provider
equipment coverage
<http://www.networkworld.com/topics/service-providers.html>. He
has 18 years of high-tech reporting experience, including over
12 years at Network World. Previously, he was senior editor at
Computer Systems News and associate editor/reporter at
Electronic News and MIS Week. He can be reached at
<mailto:jduffy@nww.com>.
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