At a time when stock options have lost their allure as a motivational tool, Nortel Networks CEO Frank Dunn is relying on cold hard cash to rally a workforce demoralized by two years of deep cuts.
In an internal memo this week, Dunn pointed out that no bonuses or raises have been paid out in 18 months.
To address the situation, he said a "return to profitability bonus?will be paid to almost all employees, upon reaching one quarter of profitability on a pro forma basis, in the period beginning with the current quarter.
Pro forma earnings exclude one-time costs such as those associated with staff cuts and losses on the value of assets.
"The future will be best served for everyone by continuing our drive to be profitable by the end of the first half of 2003,?he said.
The method for calculating the bonuses has yet to be determined.
Senior executives will get 20 per cent of their bonus after the first profitable quarter, as much as 40 per cent after two consecutive quarters, and so on.
In an internal memo this week, Dunn pointed out that no bonuses or raises have been paid out in 18 months.
To address the situation, he said a "return to profitability bonus?will be paid to almost all employees, upon reaching one quarter of profitability on a pro forma basis, in the period beginning with the current quarter.
Pro forma earnings exclude one-time costs such as those associated with staff cuts and losses on the value of assets.
"The future will be best served for everyone by continuing our drive to be profitable by the end of the first half of 2003,?he said.
The method for calculating the bonuses has yet to be determined.
Senior executives will get 20 per cent of their bonus after the first profitable quarter, as much as 40 per cent after two consecutive quarters, and so on.
