Nortel Networks 8-K 2006
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
NORTEL NETWORKS CORPORATION
(Exact name of registrant as specified in its charter)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Item 1.01 Entry into a Material Definitive Agreement
At a meeting of the Compensation and Human Resources Committee of the Boards of Directors of Nortel Networks Corporation (NNC) and Nortel Networks Limited (NNL) (the Committee) held on June 28, 2006, Mike S. Zafirovski, President and Chief Executive Officer of NNC and NNL, proposed, in conjunction with changes announced on June 27, 2006 with respect to the current Nortel Capital Accumulation and Retirement Program in the United States and Canada, and the Committee accepted and recommended to the Boards of Directors of NNC and NNL for approval, a voluntary reduction by Mr. Zafirovski of his special lifetime annual pension benefit of 29%. At a joint meeting of the Boards of Directors of NNC and NNL held on June 28, 2006, the Boards approved the voluntary reduction. As a result, Mr. Zafirovski will now be eligible for a special lifetime annual pension benefit of US$355,000 per year rather than US$500,000 per year. All other terms and conditions of the special lifetime annual pension benefit remain the same.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 5, 2006