Nortel CEO will explain bonuses to MPs

The chief executive officer of Nortel Networks Corp., has been summoned to appear before a House of Commons committee Thursday to explain how he and other senior managers qualified for millions of dollars in bonus payments as pensioners and employees were having their benefits cut or delayed while the company restructures under bankruptcy protection.

The House of Commons Standing Committee on Finance had invited CEO Mike Zafirovski and others to appear before it, along with representatives of pensioners and employees, but Nortel declined that invitation earlier this week, saying executives could not discuss these matters with the MPs while the company's restructuring is before the courts in Ontario and in the United States.

MPs, though, cited “the supremacy of Parliament” Tuesday morning in voting to summon Zafirovski to appear Thursday morning.

“I would think that he would be in the right position to explain the corporation's side of the story when it comes to severance payments, pension packages and how former employees are being treated,” said Liberal MP Massimo Pacetti.

“It's not a witch hunt. It's kind of strange. I would think that they would jump at the opportunity.”

A Nortel spokesman said Zafirovski will testify at the committee.

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