Shareholders of voted to make it easier to fire CEO Patricia Russo, whose 18-month term at the head of the merged telecommunications giant has seen its stock plunge by half and a string of profit warnings issued.

In an annual meeting in Paris full of jeers and whistling, shareholders of the American-French company also voted to link Russo's severance benefits to performance.

The two years salary to which Russo is entitled if her contract is terminated will now depend on revenue reaching 90% of the company's performance targets and operating profit reaching 75%.

Her removal, and that of Chairman Serge Tchuruk, will now be possible by the vote of a simple majority of the board. Previously, a vote of two-thirds of the board was required, a condition set to enable stability of senior management at the time of the merger of Alcatel and Lucent in February 2006.

Russo was criticized by shareholders not only for the shares' slide, but also for her demeanor, her elegance, her lack of French and, above all, her salary. In 2007, she was paid €1.8 million ($2.79 million) including benefits.

One shareholder, who did not say her name, called it "shameful." Another said he had lost "the fruits of my life's work."

Chants for Russo to resign swept the hall.

Russo said she understands shareholders disappointment. As a "considerable" shareholder, she said she has also been affected and is "very invested in this company."

"The fact that I look calm," she told shareholders, does not convey "the sense of urgency and responsibility I feel."

Alcatel-Lucent shares closed up 2.74% Friday night, but remained well below the price at the time of the merger.

Chief Financial Officer Hubert de Pesquidoux told shareholders that "we understand your disappointment." He presented a chart designed to show Alcatel-Lucent has not done so badly compared to its competitors.

Tchuruk blamed the results on the crisis in the telecommunications equipment sector, which he said is being hurt by a slowing economy.

 Source:AP News