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.