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Telecom CEO's salary package 17 times bigger than PM's

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Because some of his family live in Britain, Mr Reynolds was paid $243,950 in special travel and accommodation payments

Because some of his family live in Britain, Mr Reynolds was paid $243,950 in special travel and accommodation payments

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Wed, 26 Aug 2009 12:00a.m.
By Duncan Garner

Prime Minister John Key says he is powerless to do anything about the $7 million salary and bonuses paid to Telecom’s Chief Executive Paul Reynolds.

While the package has angered unionists, Mr Reynolds has been partially defended from an unlikely quarter.

Mr Reynolds is New Zealand’s $7 million man – his pay is 17 times bigger than Mr Key’s.

His travel and accommodation allowance alone is the same as a Cabinet Minister’s entire salary.

Reynold’s pay is being highlighted as Telecom line engineers strike over being forced to become independent contractors.

Their union says Mr Reynolds earns as much at 165 linesmen combined.

“Seven million for one man does not seem fair to most New Zealanders,” says Labour Party leader Phil Goff.

So with Telecom’s 44 percent fall in profit, questions are being asked around whether Mr Reynolds is worth it. Some experts say he may be.

“Sure profits have dropped, but is he transitioning the company? If he is successful… he is worth it,” says Bruce Sheppard from the Shareholders Association.

Mr Sheppard’s criticism of Telecom is its refusal to explain his performance bonuses.

All up in the last year, Reynolds earned about $4.8 million in salary and cash bonuses.

He gets another $2.1 million in free shares – based on performance targets.

Because some of his family live in Britain, Mr Reynolds was paid $243,950 in special travel and accommodation payments.

That alone is more than a Cabinet Minister’s entire salary.

“His salary is high, and in the context of New Zealand, you pay international prices,” Mr Sheppard.

Mr Reynolds and Telecom Chairman Wayne Boyd again declined to be interviewed today, but a spokesman once again referred 3 News to a media release, where it said the rewards given to the executives are fair recognition for the outstanding job they do.

Nowhere in the 15 paragraph release does it mention the massive drop in profit.

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Comments [6]

ben
27 Jan 2010 9:30p.m.

even if he spent his salary on his failing network it wouldn't be enough to fix it

alice
01 Sep 2009 5:30p.m.

..and i think he is quite good looking too..

John Lower Hutt
27 Aug 2009 11:34a.m.

Nice work if you can get it.

j
27 Aug 2009 9:47a.m.

What a joke! Who are we to say he doesn't deserve it? I know of one CEO of a media company who made a 3 mill clean bonus after a sale of said company.

Just another example of tall poppies. What we really should be demanding is pay parity in the fact that we are all worth $7 mill. My 40 hour week is no less or more valuable than his 40 hours, but the fact he is more fairly compensated for his time than I am hardly warrants us attacking him for being well paid!

cyril
26 Aug 2009 11:12p.m.

His pay may be in line with international prices but this is an excess that has covered the whole developed world where CEOs and heads of govt departments are paid rediculous salarys and perks. And Phil Goff should keep his mouth shut as his govt supported these excesses just as much as National is now doing. It is a culture where these people actually believe they deserve these rediculous remunarations.

boyd
26 Aug 2009 9:13p.m.

Mr Keys you can do something,it's called law changes and policy changes that protect those who trusted you and elected you.Don't let these greedy and selfish people make our government look like puppets for their own gain.

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