Illness and retirement at Nortel Networks Corp.’s leadership level has set in motion a search for a successor for John Roth, the telecom equipment maker’s chief executive officer.
The company announced that its crown prince and chief operating officer, Clarence J. Chandran, has resigned on the advise of medical doctors owing to illness. He was in line to succeed Roth, who intends to retire from that position in April of 2002.
“Since Clarence is no longer available in our succession planning, I’ll be working with our board of directors to undertake a search for my successor in place well before I retire to ensure a smooth and orderly transition,” said Roth in a statement.
“I will not be leaving until our annual meeting next year. This gives us plenty of time to recruit a successor and ensure a smooth transition.”
The Brampton,Ontario-based company said in March that the 52-year old Chandran, who also will step down as a director, would take a medical leave of absence for between six and 12 months. He had undergone two surgeries that arose from a 1997 stabbing in Singapore.
“I am advised by my doctors that my medical leave of absence, while progressing well, will require more time for me to fully recover, at which time I will resume an active schedule,” said Chandran.
“I have concluded that it is unfair to the company to extend my absence on these grounds and the responsible course is to step aside.”
For now Roth has taken over Chandran’s daily duties, even as it remains unclear if he will step down as the company’s president.
This succession ripple has come at a time Nortel is grappling with sinking sales, losses, lawsuits over insider trading and speculations of negative cash flow.
