TVNZ boss gets big pay bump despite profit fall

TVNZ chief executive Kevin Kenrick is now earning nearly $1.4 million a year despite the company's 89 per cent profit fall. Photo / File

TVNZ chief executive Kevin Kenrick received a pay bump of more than $140,000 and is now earning nearly $1.4 million a year despite the company's 89 per cent fall in profit.

The state broadcaster's annual report was tabled in Parliament yesterday, revealing its top-paid exemployee earned between $1.35 and $1.36m. A TVNZ spokeswoman confirmed this was Kenrick, who earned about $1.2m in the 2016 financial year.

The latest annual report, to the year to June 2017, shows that an un-named "former employee" was the next highest paid employee, earning $890,001 to $900,000.

The report revealed 44 current and two former employees earned $100,000 to $110,000; 40 current employees earn $110,001 to $120,000; and 25 current and four former employees were paid $120,001 to $130,000.

Forty-six current and former employees earned over $200,000 in FY2017.

The chief executive's remuneration is set by the TVNZ board.

Chairwoman Dame Therese Walsh said Kenrick's remuneration was based on independent market advice and the board's assessment of his performance against specific objectives.

"External market data is sourced from two separate remuneration specialists to ensure it's set at an appropriate level for a business leader of his skill and experience," she said.

The company's annual financial result was released in August, revealing TVNZ's net profit fell to just $1.4m in the year to June, from $12.7m in 2016.

TVNZ reported earnings before interest, tax, depreciation, amortisation, and fair value adjustments of $17.4m, were down $19.5m on the previous year, which it said was mostly due to an "onerous contract provision and marginal year-on-year declines in advertising revenue".

Its revenue declined 2.5 per cent to $316.5m. Although 2017 started with a faster fall in TV advertising, TVNZ said it ended with year-on-year growth in TV revenue.

Kenrick said at the time that the business was now in good shape to put the foot down in three key areas including investing more in local content.

The broadcaster said its content agreement with Disney had become loss-making and it has booked a $12.4m provision in the 2017 financial year to recognise the forecast future losses of this contract.

However, it said today that its big focus for 2017 was creating a more sustainable future including redesigning the organisation structure, renegotiating core content agreements, and writing off unsustainable content and accommodation lease commitments.

"FY2017 initiatives to lower TVNZ's operational cost base has created financial headroom in FY2018 to increase investment in local content - our sustainable point of difference - and to accelerate growth in our online business," the broadcaster said.

"This positive revenue momentum has continued into FY2018 and the business is on track to deliver year on year growth in earnings."