Telecom has released details of outgoing CEO Paul Reynolds’ pay package for the year to June.
In a statement this morning, Telecom revealed that Reynolds received a base salary of $5,185,574 during the year, including base salary, performance-assessed short-term incentive and special payments.
The Telecom statement notes: “The information has been released prior to the publication of Telecom’s annual report, which will be published along with Telecom’s demerger scheme booklet, during mid-September.”
Telecom chairman Wayne Boyd, who, like Reynolds, is stepping down from his role, says in the statement: ““Telecom has experienced a very strong year, including reaching agreement with the Crown for partnership on both Ultra-fast Broadband and the Rural Broadband Initiative, at the same time as delivering a strong operational performance.
“This improvement in operations, despite an extremely challenging operating environment, culminated in a 66% increase in adjusted net profit for the second half of the year, and adjusted EBITDA growth for the first time since 2006.”
[Telecom reported a 56.5 percent drop in net earnings for the year when it released the results last month].
“During the same period, Telecom has improved customer satisfaction across the board, delivered significant regulatory milestones and the company’s share price has outperformed the NZX50 by 16%.
“As such, it is the view of the board that Dr Reynolds has more than achieved the objectives that were set for him and his team at the start of the financial year, and this is reflected in his remuneration for the period.”
Share rights granted to Reynolds, worth $583,333 when granted three years ago, lapsed during the 2010-11 year, because “the specified performance hurdles have not been met.”
Reynolds’ remuneration of $5,185,174 for the year compares with $2,988,111 in 2010, $5,056,450 in 2009 and $3,042,568 in 2008.