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Alcatel-Lucent to Tie Executive Package to Performance

By Staff Author | May 29, 2008

Alcatel-Lucent plans to ask shareholders to vote on a proposal that would tie its CEO’s severance benefits to the company’s performance targets. At the company’s AGM Friday, shareholders will vote on a resolution that says in order for CEO Patricia Russo to qualify for her full severance benefits, totaling two years’ pay and bonuses plus stock options rights estimated at about $9.3 million, the company must meet at least 90% of its group revenues target or 75% of its target in terms of operating profit.

This comes amid continued rumors regarding the stability of Russo’s position with the company.

The telecom networking group has issued several profit warnings since its merger in 2006, due in part to merger-related costs and product integration issues. Shares in the group have lost about half their market value.


Filed Under: Devices

 

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