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Telecom's $100K club slims - but still nearly 3000 strong

The number of Telecom staff earning more than $100,000 fell slightly to 2870 in the company's financial year ending June 30, 2012, according to its annual report posted today.

In 2011, 2974 staff earned more than $100,000.

Telecom reduced its total head count to 7619 from 8297 in 2011 (itself a chop from the prior year's 8629). The reduction is primarily due to staff who moved over to Chorus with the de-merger.

Departed CEO Paul Reynolds was the standout earner, pocketing a package worth around $10.7 million, with another $2.4 million in the offing plus two months' free phone calls.


$1 million-plus: 10 staff (2011: 12)
$500,000-plus: 35 (2011: 41)
$250,000-plus: 198 (2010: 243)
$100,000-plus: 2870 (2010: 2974)

Beyond Dr Reynolds' supersize remuneration, a smaller executive team had a more modest time of it. Their base salary plus short-term incentives earned to June 30, 2012:

Chris Quin (CEO Gen-i): $1.29 million* (2011: $1.27m)
Nick Olson (CFO): $1.28 million (2011: $1.13m)
Alan Gourdie (CEO Retail): $1.25 million (2011: $1.48m)
David Havercroft (chief technology officer): $1.11 million (2011: $1.12m)
Rod Snodgrass (chief product officer):  $839,575 (2011: n/a)
Tristan Gilbertson (counsel): $799,940 (2011: $857,716)

While most on the executive team had shares granted under a long-term incentive scheme that vested in 2012, the amounts involved were modest compares to Dr Reynolds multi-million stock compensation.

Easily the highest was Mr Gourdie with 45,266 shares, worth around $109,000 at today's price.

* One-month of Chris Quin's 3-month acting CEO stint fell within FY2012

Comments and questions

To be honest, not sure how you would live in Wellington or Auckland on less than $100k household income..

..would be hard if had kids and a mortgage...

even worse if you think of it in aussie $ where the missus prefers to shop.

I find it hard as a single bachelor to live on 80K

I earn $82K, have 3 years to go on a 15 year mortgage ($250K) with 2 kids and save $25K/year. What is wrong with you people?

Are you the boss of 2degrees?

$82,000 ?? That's what I pay my dog walker ...

How do you get a dog walker so cheap?

We didn't get on the housing ladder when a 250k mortgage would buy you more than a cardboard box.

Make sure you stay single.

its not worth getting out of bed in the morning if your not earning $100k+ in Auckland

The number of 100k PA peeps at telecom is going down as they alost continuously restructure. Sadly this is making telecom a pretty dire place work and I suspect that they will ahve some serious problems attracting talent, especially given how they systematically eliminated unions from the workplace

Telecom always was awful place to work unless you were in top 2 levels and paid top $$$$. Their staff engagement surveys below this level would make your eyes bleed.

Thats rubbish - I work in an area in Telecom with 82% engagement. The results across the business are no worse than any other business. The only talk I get about Telecom as an employer are good things - not bad. Get over being a Telecom hater - move on!!! It would be nice if people could note the change in how Telecom does things as compared to the pre-Reynolds era and actually get behind a NZ based - and significantly NZ owned - business.

Rubbish - Telecom is the best company I have *ever* worked for. And I am nowhere near the "top 2 levels". I work hard, and get paid a good wage for doing so. And our engagement level is higher than it has ever been.

After the CEO's fine example I would have thought the number over $100k would have risen!

Ok some deserve it but surely $250,000-plus: 198 - what about the real workers pay rate goes up 1 % everywhere without fail I am hearing. No wonder staff moral is so low and most talent have ditched now Corp is left with a pool who wouldnt have a clue what ICT is!

They better start treating real emplyees well or there will be no one left!

as an ex telecom staffer I can confirm that pay rises were practically non existent. the tragically mismanaged HR situation means that ongoing restructures have everyone constantly speculating about the next restructure rather than focusing on their job and the companies performance.

As an aside, their most recent engagement survey was so dire that the results were hushed up for fear of hard questions being asked.

Anyone looking for a role in the telco space should avoid Telecom if they want to keep their sanity whilst being a wage slave.

Unless you are in Telecom management, you are stuck in a pay band that is extremely low. The pay bands never get adjusted and some people havent had raises at all in the last few years. Having said that, some of those higher paid people are highly-qualified engineers and rocket scientists, and deserve the salaries they get for the innovations they drive.

"$1 million-plus club" Are they really value $1 Mn ? Are they really add $1 Mn value to the company ? This is another 'Bubble' as a result of market fundamentalism (market mechanism !

Tell him he's dreaming mate.

It's a disgusting waste of money, paying anyone >$1m. No one person is worth that much. More examples of corporate greed that has brought society down to the gutter level we are at today.

Depends if they had 100's of Millions to the business with changes they implement...if they do its money well spent I say

Hummm sour grapes from the ex employees - I have worked in Telecom for almost 14 years - In a sales role. Amazing people - an amazing company. I have worked hard and been rewarded for my efforts. Its easy to sit there and throw stones - but remember, Telecom employees over 7000 people........and they pay well in return for good workers....most of this money supports NZ's economy. They also spend a huge amount of money supporting the community.
Work hard - Play hard - Earn well: What wrong with this.


I agree with #17 anonomous.
A package of $1 million dollars is rediculous; no wonder Telecom has such bad staff turnover.
And as for the ceo's final package,well you have to wonder about the quality of their directors.

Not true

I meant what #11 said is not true

Hmm , not sure which part of Telecom causes such grief for the employees. In my area , I have to say its pretty darn good. Good boss, good team and challenging but interesting and diverse work. Have to admit though that as the sole income earner , with a wife and two kids and a mortgage - making just under $100K doesn't leave much. But I'd still recommend TNZ as an employer for sure.

As an ex-employee, I have to say Telecom was a great place to work. I worked with some brilliant people, great culture with-in the company and always felt rewarded for my hard work (Bonuses, BYB etc)

In saying that I do understand people complaing about the banding of roles in Telecom - This was one of the reasons I decided to move on, but I have to say the same exists in all corporates and Telecom is no different.

I don't agree with people who say no one is worth >$1m. Why not? If they run the company well enough bring about positive change, add $100's of milions of dollars of value to the company. Why would'nt you be valued at >$1m?

Spot on - couldn't agree more with everything you have said.

The problem with the monopoly Telecom is that it's so focused on sales and profits rather than providing good service at a reasonable price. From the way you describe it Telecom sounds like a bank with its offerings of bonuses and salaries more than double the national average. It also seems to attract people who want a safe job with a high salary. Anyway, it's just a boring old utility company with no real competition that should be renationalised. Under public ownership it might return to putting people before profits. NZ is too small to have a competitive telecoms industry.

some of you seem delusional - No ONE made the company that much money - but rest assured I can tell you they cost the company that much and more with market decisons and other blunders. And yes almost all those who do the grind have had less than 2% for several years now. How can you have respect for these people? Inflation and CPI have been well above any payrise for the real workers. Engagement? 85% whatever.

It's not about making the company that many $$. It's about the change he drove. Compared to the days before Paul, the culture was a lot different, he made us focus on the customers - and so drove positive changes with in the company - this is reflected in the shareprice (adding more than $150m to the NZX during his time).

I was one of the people that used to have to do the daily grind. I aspire to be part of senior management of an organisation at some point. When I am I would like the company to pay me what I'm worth.

I respect the people that are up there becuase of the work they do, the experience they bring in to the company, the changes they drive.

I know its fustrating when payrises are 2% under inflation as you pointed out, but a lot of other organisations also only offer their staff that, if not less.

Hmmm, so when can we expect to notice an improvement in our experience when we deal with telecom?

Concratulations on your aspiration to become a sociopathic liar. Thats what it will take to become part of their senior management team.

I think it's been happning since Gatting left. The service you get now is 100% better than it was at that point. I now rate teh service I get from Telecom well beyond what 2D and Voda can offer. Hence, I'm still a Telecom customer even after leaving Telecom.

I think you need to have a chat with the people that have lied to you. I know I was never lied to during my time at Telecom. I had great managers that always stated their opinion and I respected them immensely.

I love this company, just got paid our bonuses.

Telecom doesn't pay there front line teams very well at all. The senior leaders in the ivory tower make sure of that.

#31 and #33 - where do you work? You are clearly one of these born to moan people that clearly has nothing to do but moan that nothing falls on your lap and you believe everyhitng falls on the laps of the CEOs. I have worked before Paul Reynolds came on board, was run like a circus. left and then came back and seen the improvements that have filtered down from the CEO team and the drastic change of attitude....which is why I work here and would recommend them to anyone else as an employer.

Well said. The same goes for me!

I paid more tax this fortnight than most people do here in a year!