Union Says Alcatel-Lucent Executives' Pay 'Scandalous'

Bloomberg News - April 14, 2007

 

MURRAY HILL -- Alcatel-Lucent Chairman Serge Tchuruk and Chief Executive Officer Patricia Russo received "scandalous" compensation last year, when earnings slumped, said the telecommunication-equipment maker's largest union.

Tchuruk, 69, earned 8.2 million euros ($11 million) in compensation last year, including a departure allowance of 5.7 million euros for passing the CEO job to Russo, according to the Paris-based company's annual report filed with the U.S. Securities and Exchanges Commission last week. Under Tchuruk, Alcatel's workforce was slashed to a third, revenue was cut in half and the company sold all its non-telecom businesses, the union said.

The French company merged with U.S. rival Murray-Hill based Lucent Technologies Inc. last year to fend off increased competition. The combined company plans to cut 12,500 jobs, or 16 percent of the workforce.