Telecom remake Boyd's first task

Wayne Boyd

Wayne Boyd's first act when he takes over as Telecom's chairman will be to remake the board, filling vacancies with directors versed in consumer branding and new technology.

He will first replace departing chairman Roderick Deane and director Paul Baines, who leave at the end of the month. But he has also left the door open to expanding the board beyond eight members.

"The decision [on expansion] has not been made; it will really depend on the search process that we have now instigated."

But Boyd gave a less-than-ringing endorsement of the directors many investors want removed from the board - SkyCity director Patsy Reddy and Telecom chief executive Theresa Gattung.

He said: "We have a very able management team and board."

Asked whether Gattung was the right person to lead the executive team, he replied: "I have said in a number of interviews that we have a very able management team."

Is this an endorsement of Gattung? "We have a very able management team and that includes all the team.

"We will be looking for people in the technology sector and people with clear strategic and operational experience. The board is also searching for someone in the fast-moving consumer goods and the banking area."

Boyd was named chairman late on Wednesday and will remake Telecom as it adapts to planned rules that will force it to open its network to competitors.

The plans, which wiped more than $2 billion from Telecom's market value after they were leaked before last month's Budget, are designed to make high-speed internet access more available and affordable.

Deane had been planning to quit for some time but his decision was precipitated by the Government's plans.

Boyd's appointment to the $400,000-plus-a-year role has been well received by investors, who have criticised the company for delays in saying how it will deal with the changes.

Telecom's shares closed up 9c last night at $4.58 but this was still well off the $5.55 trades before the Government disclosed its plans.

Boyd said he would spend the next month getting better acquainted with Telecom, where he has sat as a director since 2004.

He would also be reviewing whether he would have to give up some of his other directorships.

Boyd also chairs Auckland International Airport, transport group Freightways and state-owned generator Meridian Energy and is a director of broker Forsyth Barr.

"What a responsible director does is review his positions and he has to be able to give to each position the requirement that is needed. I will be reviewing my positions."

He disclosed little about Telecom's new strategy, its investment plans or moves such as splitting the telco into two - one company providing retail services and the other selling network services.

He said these questions would be dealt with by a team examining how Telecom would adapt to the new regime.

This team included consumer operations head Kevin Kenrick, wholesale chief Mark Ratcliffe and Gattung.

"There are a lot of moving parts here. It is important we assess them properly before we make a final determination. But I do stress we are going to ensure there is a level playing field for wholesale and retail customers."

Boyd said working on Telecom's relationship with the Government was one of his first priorities. His leadership of Auckland Airport and Meridian had given him experience with the government and regulation in other sectors.

His dealings with the Government would be characterised thus: "No surprises, open discussion, credibility and listening."

Telecom would honour its commitment to update investors on its strategy at the end of this month.

But Boyd appeared to suggest the presentation would not be the last word on Telecom's future.

"I recognise the transformation project is large and I would rather that I was allowed the time to determine what the milestones should be.

"This has got to be a good process, good for Kiwis and good for technology in New Zealand."