NZ stint earns Reynolds $30m

Paul Reynolds. Photo / Sarah Ivey

Former Telecom boss Paul Reynolds pocketed more than $12 million in cash and shares during his final year with the company, bringing the total earned during his five-year tenure to almost $30 million.

And Telecom's annual report, released yesterday, said the Scotsman - who left the firm at the end of June - would receive "reasonable relocation costs" for him and his family to return to Britain.

Accommodation and telephone expenses for a period of up to two months following the end of his employment were also included in the termination terms.

Reynolds' pay for the year to June 30 included a base salary of $1.9 million, short-term incentive payment of $1.75 million, long-term incentive of $2.1 million, termination payments of $1.75 million and "special payments" of $331,552.

The report said the special payments were for personal travel between New Zealand and Britain, accommodation and tax advice.

Reynolds also received share-based incentive payments in the year to June, including 274,204 performance rights awarded in September last year, which could be worth up to $551,972 based on the highest Telecom share price for that month.

The company said a remaining 512,128 performance rights would be subject to "re-testing" next month to decide whether they would be awarded.

Reynolds also received 491,127 performance incentive shares on May 25, which were worth $1.2 million at that time.

Including the share-based and cash payments, as well as a just over $3 million short-term incentive payment earned in the 2011 financial year but paid in the 2012 year, Reynolds' total pay for the year to June was about $12.7 million.

Since joining Telecom in late 2007 he has received total remuneration of $29.8 million.

Shareholders' Association corporate liaison Des Hunt said in June the $1.75 million golden handshake Reynolds received on leaving the firm was a consequence of overly generous terms and conditions that were agreed when he was employed in late 2007.

"Over the last 10 years there's been a lot of slackness and irresponsibility at top level - board level - in negotiating these contracts," Hunt said.

In its annual report Telecom said Reynolds' remuneration "reflected the scope and complexity of the CEO role".

The report also said Simon Moutter, Reynolds' replacement as Telecom chief executive, would receive a maximum pay packet of $3.7 million in his first year, with an additional $750,000 in share rights subject to shareholder approval.

ROLLING IN IT

$12.7m

2012 pay, including shares

$29.8m

Total earned since 2007

$34,000

The minimum amount Reynolds was paid each day during the 2012 financial year