Radio New Zealand - Te Reo Irirangi o Aotearoa

Telecom boss received final payment of $1.75m

Updated at 10:40 pm on 2 July 2012

Former Telecom chief executive Paul Reynolds received a final payment of $1.75 million for his time at the company.

Dr Reynolds's tenure ended at the end of June this year. He has been replaced temporarily by Chris Quin until chief executive Simon Moutter starts in mid-August.

Telecom says the termination payment is part of an agreement that ensured Dr Reynolds stayed to oversee the split of the business and the establishment of Telecom as a separated business.

Dr Reynold's pay, which totaled about $5 million in some years and is likely to be more than $20 million for his five years in charge, has been criticised by some as excessive.

But Telecom chairman Mark Verbiest says total shareholder returns outperformed the benchmark index by more than a quarter under Dr Reynold's tenure.

The Shareholders Association had agitated for greater openness about Dr Reynold's total pay packet, and chairman John Hawkins says he expects Telecom to be more upfront about pay from now on.

"The announcement they made today is what we hope is the start of a new transparency with the new board, and eventually the new CEO."

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