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Paul Reynolds - Source: ONE News -
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Telecom CEO Paul Reynolds will receive his full performance bonus alongside his $1.75 million base salary, despite a fall in the company's profits.
All up, Reynolds' total pay package of cash and shares for the year to June 30 was just over $5 million.
According to The New Zealand this is new record for a CEO of a New Zealand public company.
In the company's annual report, Telecom says the remuneration of the CEO reflects the scope and complexity of the role, with the package being directly linked to performance outcomes.
Included in the package are performance bonuses of $1.3 million in cash and shares and $2.1 million in share rights.
Telecom chairman Wayne Boyd on Monday said Reynolds had been given the maximum bonus for his outstanding first full year in which he had negotiated the company's obligations with the government, according to the New Zealand Herald.
Last week, Telecom announced an almost 44% drop in full-year profit to $398 million.
The result was impacted by increased competition and lower margins as well as costs associated with separation and infrastructure improvements.
At the end of May the company launched its third generation mobile XT network.
Telecom is New Zealand's largest listed company. Do you think its CEO should be paid this much to do the job?
Have your say on our messageboard below.
Add a Comment:
Post new commentGabriela said on 2011-05-11 @ 20:57 NZDT: Report abusive post
Work at cost. Hiring was up in April, but so were unemployment numbers. However, one thing that hasn't changed is the stagnant income amount of average United States workers. According to the AP, however, CEO wages in 2010 were at the highest amount since 2007. The proof is here: CEO salaries at highest level since 2007
brinjoy said on 2009-10-01 @ 13:24 NZDT: Report abusive post
No. Absolutely disgusting,nobody needs this amount of money to live on regardless of their lifestyle. Getting in to the realms of the highly overpaid footballers in the UK.
Equipe said on 2009-08-29 @ 16:04 NZDT: Report abusive post
No. Have they compared the salary to other corporates in the UK and Australia? Seems way OTT for a non world class company.....
corun said on 2009-08-28 @ 17:55 NZDT: Report abusive post
OMG!! Absolutely ridiculous!! amount to pay one person. Just another gravy train for the rich. And to make matters worse, way wasn't the job given to a New Zealander. That amount of money could of been better spent on employing workers, instead of dishing out $5million to just man.
radar832004 said on 2009-08-26 @ 09:41 NZDT: Report abusive post
its funny how big executive's get these payouts. broadband prices in New Zealand are considered the most expensive in the developed world and yet Telecom has the nerve to make a payment like that. How big were the dividends payed out to their investors?