The Telecom board has started the search for a new chief executive to replace Paul Reynolds.

Forsyth Barr analyst says if companies signal capital management, they are usually thinking about share buybacks, special dividends or share cancellations.

Total costs down, but a big jump in those earning $500,000+ and numbers earning $100,000+ edge up despite a cost-cutting drive.

Telecom boss's total remuneration for the financial year 2011 was more than $5 million.