Nortel announces CEO, COO resignations

Nortel Networks revealed two major executive changes as President and CEO John Roth said he would retire in April 2002 and effective immediately, Chief Operating Officer Clarence Chandran would resign for medical reasons.

The world’s largest telecom-equipment supplier said the search for Roth’s successor will begin immediately.

“Our priority is to have my successor in place well before I retire to ensure a smooth and orderly transition,” Roth said in a statement.

Chandran, a 15-year Nortel veteran and once the likely heir apparent to Roth, was seriously injured during a 1997 stabbing attack in Singapore. He began a six- to 12-month medical leave in March as complications from the incident arose, but decided to resign upon doctors’ advisement that full recovery would require more time.

Since that time, Roth has assumed Chandran’s day-to-day responsibilities and will continue to act in dual roles until his replacement is named.

“It is simply unfair to the company to extend my absence on these grounds, and the responsible course is to step aside,” Chandran said in a statement.

The senior-level departures arrive amid 20,000 job reductions and recent criticism that Roth may have made fundamental errors in forecasting earnings that, when revised, took investors and management by surprise.

But the company’s current financial difficulties and restructuring efforts have nothing to do with Roth’s decision to step down, said Chris Nicoll, vice president of telecom infrastructure at Current Analysis.

“He’s had a great run,” Nicoll said.