TORONTO – Nortel Networks Corporation today announced that it, Nortel’s new CEO Mike Zafirovski and Motorola, his former employer, have reached a settlement regarding the lawsuit filed October 18, 2005 against the incoming CEO.
"We worked in good faith to resolve this issue with Motorola and we are very pleased with the successful outcome," said Harry Pearce, chairman, Nortel board of directors. "The Board selected Mike as we believe he is the best candidate to assume the role of president and CEO and we have every confidence in him. We look forward to a great future together."
The terms of the settlement provide that Zafirovski cannot disclose Motorola trade secrets or confidential information, and Zafirovski and Nortel have agreed for a specified period to refrain from hiring or recruiting Motorola employees under certain circumstances. The settlement also includes restrictions, until July 1, 2006, on Zafirovski’s communications with certain specified companies, some of which are Nortel customers, and limitations on his ability to advise Nortel on competitive strategy or analysis relative to Motorola for a defined period. Zafirovski will also repay Motorola US $11.5 million, which is part of his separation payment from Motorola, and Nortel has agreed to fully reimburse Zafirovski for this repayment.
Zafirovski, formerly Motorola’s CEO, will begin his tenure as Nortel president and CEO, and director of the boards of the company and Nortel Networks Limited, on November 15, 2005, as originally planned and announced.
