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- Release Date: 02/07/12 10:33
- Summary: GENERAL: TEL: Telecom CEO transition commences;releases Reynolds' payment
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TEL
02/07/2012 08:33
GENERAL
REL: 0833 HRS Telecom Corporation of New Zealand Limited
GENERAL: TEL: Telecom CEO transition commences;releases Reynolds' payment
MEDIA RELEASE
2 July 2012
Telecom CEO transition commences as Dr Paul Reynolds' termination payment
disclosed
Telecom has today confirmed that Dr Paul Reynolds officially ended his tenure
as Telecom CEO at the end of the company's financial year (30 June) and will
receive a termination payment of $1.75m.
As has been previously announced, Chris Quin takes up the role of interim CEO
until Simon Moutter begins as Telecom's chief executive on 13 August 2012,
three weeks earlier than previously advised.
Commenting on Paul's departure, Mark Verbiest, Telecom Chairman said, "I
would like to thank Paul for the role he has played in delivering structural
separation and ensuring Telecom has the right focus and direction as it
adapts to its new operating environment," he said.
Since Dr Reynolds joined the company, Telecom has outperformed the NZX50
index on a total shareholder return (TSR) basis by more than 25% in the five
years since October 2007.
Dr Reynolds' termination payment forms part of an agreement that ensured he
would remain with Telecom to oversee structural separation, the establishment
of Telecom as a separated business, and then leave the company on 30 June
2012.
"The company needed certainty as to when Paul would depart and this agreement
allowed time to find an appropriate CEO for Telecom's new business, ensure
an orderly transition and stability in our interim leadership," said
Verbiest.
"Paul would have been entitled to 12 months' total base remuneration if the
company had given him notice post demerger, but in that scenario he would
have only been obliged to stay for three months," he said.
"As I understand it, taking all of that into account, the board at the time
and Paul mutually agreed on a leaving date that included a payment of 12
months' total base remuneration, effectively in lieu of notice."
Dr Reynolds will also be entitled to Short Term Incentive and Long Term
Incentive payments earned during his tenure as Telecom CEO. The full details
of these payments will be disclosed in Telecom's Annual Report once finalised
and approved by the Telecom Board.
- ends -
For media queries, please contact:
Ian Bonnar
Head of Corporate Communications
+64 (0)27 215 7564
End CA:00224504 For:TEL Type:GENERAL Time:2012-07-02 08:33:23
