Something is very wrong at Telecom

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underpaid

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#40145 25-Aug-2009 19:39

Is it just me or does the fact that Telecoms CEO get a $5m payout when most Telecom staff are not even getting a pay-rise seem wrong?

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#250483 25-Aug-2009 19:56

hmm let me think ... no.

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#250485 25-Aug-2009 20:07

i agree with you. but in the world of free trade and capitalism, every man for himself. the board which approved the payout needs the ceo has the ceo rewarding them with lots of dosh. they get the money by ripping off the customers and their own staff. markovnikov's rule - the rich always get richer. if you want to be rich, you need to be rich. it's sad!

the other alternative is communism. nobody gets rich but the goverment.

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#250487 25-Aug-2009 20:12

He has an employment contract that pays him $1.8 million with the rest being based on bonuses.

Regardless of whether it's right or wrong that's what his contract says.. And it's far less than Sol was paid to run Telstra!

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#250558 26-Aug-2009 01:05

They, as a board, wanted one of the best in the world, and they drew up a contract that met the requirements on what Mr Renolds could have got elsewhere in the world.
Getting someone to move from the UK to NZ with his experience i would imagine costs quite a bit.

I must say that he has done a good job at re-imaging the company and the complaints we get through the workshop from customers seem to have dropped since aunty theresa left. \

The board promised to pay him the amounts in his employment contract and they are therefore required to do so. I personally dont like the visionstream way of things and i really do wonder how they are able to organise the managment of such a large network and allow other companies to maintain it.
Managing the keys to all the cabinets and exchanges must be a nightmare.

Again i dont like how visionstream do things. The telecom industry is one of those where people left school to become a telephone technician- there are alot of people that worked for the post office earlier on and are now working indirectly from telecom. Its a cost cutting measure and it is going to result in lost jobs - most of which will find it very hard to go somewhere else.
You have spent 40 years working on the national telephone network and they no longer want you - where else can you go that have job openings now for someone that doesnt know any other industry or have any other skills?

I think the visionstream method is also how sky television operate?

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#250571 26-Aug-2009 07:29

Wish I was paid

boby55

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#250573 26-Aug-2009 07:37

Well deserved I must say... What he has done for Telecom since he has been CEO, XT network roll out, Nationwide ADSL2 rollout.

People no longer think of telecom as the bad company like they did when under Aunty Theresa control.

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#250593 26-Aug-2009 09:15

Some people are paid by their leadership and experience. AS said before he's changing the company, no small task. The fact that the world and local economy is in a recession, plus the company was in bad shape (market and mindshare) before his coming to the helm, only accentuate the problems.

Not all is his doing. But he's driving it out of the mess.

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#250604 26-Aug-2009 09:48

boby55: Well deserved I must say... What he has done for Telecom since he has been CEO, XT network roll out, Nationwide ADSL2 rollout.

People no longer think of telecom as the bad company like they did when under Aunty Theresa control.

At least you said rollout. You can't give Reynolds any credit for decisions made before late 2007.

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#250605 26-Aug-2009 09:50

joker97: the other alternative is communism. nobody gets rich but the goverment.

Nope communism doesn't work either. Government gets rich, and the people close to the government get rich, everyone else gets to fight for a Skoda.

Everyone is equal, but some are more equal than others.

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#250608 26-Aug-2009 09:54

Bung:
boby55: Well deserved I must say... What he has done for Telecom since he has been CEO, XT network roll out, Nationwide ADSL2 rollout.

People no longer think of telecom as the bad company like they did when under Aunty Theresa control.

At least you said rollout. You can't give Reynolds any credit for decisions made before late 2007.

Yep. But the decision to not get into GSM (old technology) and go WCDMA only was made after his taking position in the job.

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#250609 26-Aug-2009 10:00

underpaid: Is it just me or does the fact that Telecoms CEO get a $5m payout when most Telecom staff are not even getting a pay-rise seem wrong?

well, he didn't get a pay rise either. He got what was in his contract. Salary+Bonus

you should also note that of the $5m, around $2.5m is cash and the rest is in restricted shares, meaning he is not allowed to sell them yet (and so they haven't cost Telecom anything yet either). This means if Telecom imporves it's share price over the next few years he will be in line for even more money, whereas if the share price declines they will be worth less.

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#250611 26-Aug-2009 10:19

From CommsDay, 9/12/2008:

What the CEOs earned last financial year
Telstra CEO Sol Trujillo $13,394,523
Sensis CEO Bruce Akhurst $4,795,818
Telecom NZ CEO Paul Reynolds $3,929,473
Austar CEO John Porter $3,637,462
Optus CEO Paul O’Sullivan $2,682,000
Hutchison CEO Nigel Dews $1,342,219
IINet CEO Michael Malone $619,461
M2 Telecom CEO Vaughan Bowen $599,672
People Telecom CEO John Stanton $584,357
Macquarie CEO David Tudehope $579,376
Freshtel CEO Rhonda O’Donnell $414,000
Amcom CEO Clive Stein $348,723
Engin CEO Mark Zworestine $341,986
EFTEL CEO Simon Ehrenfeld $337,054
Clever Communications CEO Scott Carter $247,636
Pipe Telecom CEO Bevan Slattery $208,655

BigAir CEO Jason Ashton $155,325

Would have been nice to see a comparison with company size.

They also compared COO/CIO/CTOs and CFOs. They commented "there are seven Telstra executives earning more than the CEO of its biggest rival - Optus"

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#250613 26-Aug-2009 10:23

underpaid: Is it just me or does the fact that Telecoms CEO get a $5m payout when most Telecom staff are not even getting a pay-rise seem wrong?

I have conflicting feelings on this sort of issue...

CEO pay has gone up 250% over the past 10 years. Yet earnings per share rose about 6-7% per year, in line with historical trends. I'm fairly right-wing, but clearly it is getting ridiculous.

However the best CEO's are in short supply, so if that's what Telecom had to pay to get the best CEO for the job that was available that's what they had to pay.

I don't see a better system emerging anytime soon.

There is still the fact that "if everyone could do it, they would, and it wouldn’t be worth much." clearly they can't and it isn't.

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#250636 26-Aug-2009 11:27

While I may take issue with the way Telecom has been conducting itself, I don't have too many concerns about Mr Reynolds salary package. It is what the industry is paying for the right person at this level.

I do feel that the CEO of any company, Telecom in particular, has to be careful not to put too much distance between themselves and the most important people in any business; the customers. Paul Reynolds is clearly not as bad as the previous CEO, who seemed hell-bent on doing whatever it took to keep the shareholders happy at the expense of customer service and the effect it was having on the telecommunications industry in NZ.

Now based in Perth WA.

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#250781 26-Aug-2009 19:27

I see in todays Dominion and tonites news that his salary package is $7mil.

Regards,

Old3eyes

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