Nortel Names Motorola Exec As New CEO

The executive shuffle is Nortel's latest move to rebound from an accounting scandal that came to light last year under the watch of Owens' predecessor, Frank Dunn.

"Mike Zafirovski has the kind of proven, team-building leadership that has seen him create significant, new value during his career in two of the world's most important global corporations," Nortel Chairman Harry Pearce said in a statement. "He's the right leader to build on the important work of Bill Owens--and take Nortel to the next level."

Zafirovski previously served as president and COO of Motorola. Before that, he spent 25 years with General Electric in a succession of senior executive positions, including president and CEO of GE Lighting, president of GE Capital Mortgage, and president and CEO of GE Capital Fleet Services. He's also a director of The Boeing Corp.

Pearce credited Owens with delivering an experienced, steady hand during "a moment of great challenge and enormous need in the history of this company."

Owens, a board member of Brampton, Ontario-based Nortel since 2002, is a former chairman of the U.S. Joint Chiefs of Staff and served as commander of the U.S. 6th Fleet during Operation Desert Storm. He took on the Nortel CEO job in April 2004 and ushered in a series of reorganizations, executive changes and layoffs aimed to right the Nortel ship. He is scheduled to depart the telecommunications company on Nov. 15.

Upon leaving, Owens will continue to serve on various boards promoting good governance and will continue to pursue entrepreneurial and philanthropic efforts, according to the statement.

Company executives are scheduled to discuss the changes later Monday afternoon during a press conference.

Shares of Nortel rose 27 cents to $3.57 on Monday morning following the announcement.