The employment spat between Telecom and its engineers has taken a new turn.

The Commerce Commission is probing loyalty offers made by the company's wholesale business unit.

Telecom's board chairman says CEO Paul Reynolds deserves his $5m salary package, which was labelled "shameless greed" by a union head today.

The EPMU hits out at Telecom's decision to pay CEO Paul Reynolds his full performance bonus, despite the company suffering a 43.9 per cent drop in profits.

Telecom will pay chief executive Paul Reynolds his full performance bonus despite a fall in profits.

Telecom has this morning reported a 43.9 per cent fall in full year net profit to $398 million.