Reynolds to quit Telecom

Telecom has this morning confirmed that chief executive Paul Reynolds will leave the company following its demerger, now expected before November 30.

In a statement, the company said the board would begin the search to replace Dr Reynolds during 2012. 

The Telecom boss was recently spied on LinkedIn hooking up with an associate from global executive recruitment company Heidrick & Struggles.

Dr Reynolds' $7 million remuneration for his company's 2010 financial year gained him noteriety as New Zealand's most highly paid chief executive. At the time Telecom's substantial Crown Fibre win was announced, the CEO purpoted to not have given his future a moment's thought. However, analysts were always dubious he would stay on to lead Telecom after the Chorus spin-off, which will halve the size fo the company.

Internal candidates for the CEO role include Gen-i division head Chris Quin and retail chief executive Alan Goudie.

Deutsche Bank analyst Geoff Zame has previously told NBR it's even odds that an external candidate could be drafted.

Telecom earlier confirmed that incumbent Chorus chief executive Mark Ratcliffe would lead the spun-off "New Chorus."

Dr Reynolds came to Telecom New Zealand from British Telecom (BT) where he served as chief executive of the company's wholesale division.

The Scot gained a PhD in geology from the University of London in 1981, later going on to attend the London Business School.

He leaves Telecom on a comparative high.

The company's shares, which traded below $2 during the period of Crown Fibre uncertainty, were yesterday above $2.60.

For NBR, Dr Reynolds has earned his number two slot on our tech power list. For better or worse, there's no doubt his huge influence over our re-caste telecommunications industry. Canny negotiating - coupled with the bald threat of cherrypicking the most economic fibre business if Telecom was left out of the UFB - saw the original plan for up to 33 different Local Fibre Companies melt into Crown Fibre project dominated by Chorus.

Telecom shares [NZX:TEL] were down 4.14% to $2.525 in late trading.

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21 Comments & Questions

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Party at B S Bertie's house?

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I am so there!

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Nice to see Reynolds took my expletive laden advice last weekend when I discovered my ex kiwi Sydney based pal had just been given full free phone use including 200gb adsl2 broadband and pocket money for excess use - all for A$70 / month

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Hopefully the next person will be on a sensible salary and no greed-invoking bonus package which has been one of the major contributors to the current western-world financial mess.

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Paul will be missed - he is an outstanding leader and has fronted Telecom during some of its most complex transformational years.

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I work at Telecom and reading some of the overtly hysterical and emotive rants in this comments section appals me.

Paul Reynolds has led Telecom through an incredibly difficult time and has had to manage some pretty major issues during his tenure.

I and I am sure, most most Telecom staff feel that Pauls handling has been transparent, honest and above all a credit to him.

I doubt any of the hysterical naysayers who seem to have no problems commenting from their armchairs would have been able to do a better job.

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I would have done it for half the price - what a suck up - bet you are hoping he signs your cv.

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We need a front loader here to scoop out the BS from trolls employed by other telcos... Paul Reynolds came to Telecom as a lot of regulatory and technology issues came home to roost - His handling of the XT outage, the Christchurch quake and his openness are a credit to Telecom

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Agree completely. The tenor of the comments on here sound like they come from the readership of Pravda or the NZ Herald.

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At last. He hasnt improved telecomes value or profits.

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Just put Chris Quin in charge and forget wasting time and money on the search. He was superb during the XT and ChCh earthquakes, respected internally and gets it.

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+ 1 for that idea

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How could the Brogue Rogue ever be replaced?
Nor should he be -- ever-- @ a gross $7-mil.
Sweet to see a handful of sycophants lining up to kiss his nethers goodbye though.
I have to admit to having UNDER estimated him....unlike the board.
His degree, it turns out, is in GEOLOGY. Not much technology or strategy there....but a total dedication to KNOWING WHERE THE GOLD AND RICHES ARE BENEATH THE SURFACE.
Oh, boy, did that serve him well.
No NZ board must ever get away with that waste of good money again. For heaven's sake, we are the size of an average city.....less than half the size of NYC. Do you think Bloomberg pays his head sparkie that sort of money? S/He'd not get a tenth of that.
[Smart move by the clown who led the circus that appointed him....without checking his record at C&W...to duck out now too.]
Suggest we all send him Buffett's guide to the over-rewarded on how to give back. I'd settle for 9/10ths as a fair divvy.
Will be interesting to see what the highly competent, PROFESSIONAL Mark Ratcliffe gets?
Having opened a book on GAttung...the prototype for this scandal...getting another job in the telco game...and not getting any traction ('cos you all knew that was a joke in bad taste)...how about an extension on this laddie?
Libyan Posts and Telecoms excluded, and possibly Zimbabwe too....but Mugabe's not as mad as some (local board members)
Enough....it's over, thank the Lord.....although there might be one more aftershock when the severance package leaks out. Shudder.

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Ah Bertie I was wondering when you crawl out from under your rock. I have said it to you in previous posts and I still say it now. That bought Reynolds on to win the UFB bid and to manage a operationally (and now structurally) separated company. Sorry to say despite you protest he did all of that. I class the man on his achievements not on mud you constantly sledge at him. I'm not sure what really gets your goat about Reynolds Bertie. Is it just his salary? I notice you don't take any pot shots at any other CEO's (Westpac, Vodafone, Air NZ to name a few) who get paid millions FYI. If Reynold was crap I would be there with you sledging him off. However the man has done well so give him his due. It's a new world out there Bertie so please move on or in your case crawl back under your rock.

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Reynolds stewardship of Telecom will go down as a poor period in its history.Telecom has muscled its way into things by being a big bully and the arrogance of so many of its obscenely highly paid executives (including Reynolds) is nothing short of a disgrace. Customers and shareholders have done poorly from Telecom over recent years, so most will be pleased the Scotsman is off to faraway places (we hope)

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umm says who? You or Bertie? I said this in another thread on the NBR site. No one forced Steven Joyce and the government to accept Telecom's UFB bid. The put in a tender and it got accepted. It was against the law for them to "bully" people. If you have an example then please by all means provide it. Also I'm not sure why you say "Reynolds stewardship of Telecom will go down as a poor period in its history". Every source in the media and in the industry is saying this is a good thing that can only benefit NZ. You and Bertie are the only two who are not. Again if you have evidence to the contrary then by all means please produce it.

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The pomposity of your stance against Bertie only shows your own disconnect (no pun intended) from the grass roots and IT bereft class of kiwi that still thinks they have a right through past ownership of the Post Office etc to have a continued say in this monopolies running. Purely as an ordinary customer, a role I suspect you cannot be and further your attitude smacks of some privelege the rest of us dont receive; only proves that telecom execs believe their own PR bulls hit. From Gattung to Reynolds they have all been so out of touch and condescending typified by acts of stupidity any moral marketer should cringe. Your support of the tosser says everything about you and shows your understanding of the kiwi consumer is equally lacking.
Viva la revolution.

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I can only say one thing to that. Blame the labor government for selling it and not me. It annoys me that people like you think that they should have a say in privately owned enterprises. Do I say what you can and can't do with your own property? No. The fact of the matter is Telecom is a privately owned company that has a fine line to walk between making money and keeping NZ happy. I'm not defending their practices of the past. They have been their own worst enemy by their investment strategies. People need to look to the future and not the past. I don't actually have anything against Bertie personally. Hes actually quite a funny guy. it's his interpretations of the facts (and yours) that get to me. Personal views are fine but I like the facts more.

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OK fair enough, I see what you mean and agree somewhat. The reason some of our collective interpretations are so passionate is we cant deal with Telecom or not as we choose because while its a private company, it has the power and tentacles of a monopoly...to the detriment of my wallet and service expectations...at least in my eyes. I have a suspicion we understand each other...but its fun venting.

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FYI if you think it's a poor period try asking some Telecom staff members. They will most likely read mine and your own posts and most likely completely disagree with you.

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Put Chris Quin in charge.. Jesus, turn out the lights as you leave, I know people who work for Gen-i and that would be a disaster if that happened. At least Reynolds knows how to lead and has dug Telecom out fo the mess the previous bunch left it in, that may give you clue as to why he has been paid the salary he has.

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