Spike in Telecom staff earning $1 million+

$1 million-plus: 12 staff (2010: 8)
$500,000-plus: 41 (2010: 32)
$250,000-plus: 282 (2010: 243)
$100,000-plus: 2974 (2010: 2945)

The number of Telecom staff earning more than 100,000 grew over the company’s 2011 financial year – despite an ongoing drive to cut costs.

Last year, there were 2945 members of the $100,000-plus club.

For the 12-months to June 30, that number expanded to 2974 – putting it ahead of Fonterra (2785).

Telecom reported it had 8297 employees – roughly half that of the dairy co-operative.

Earniings swelled in the higher echelons.

41 Telecom staff earned more than $500,000 in 2010 – against 32 in 2010.

12 received total remuneration of more than $1 million – against eight last year.

2011 was a year in which Telecom’s payments to employees and subscribers increased to $3.41 billion over the previous 12 months’ $3.39 billion, according to the company’s condensed accounts.

But overall, the effect of cost cutting is evident.

Telecom’s total operating expenses fell 5.8% or $204 million over fiscal 2011.

And total headcount dropped from 8629 to 8297 – despite around 300 contract roles formerly handled by HP being “insourced” to Telecom, which chief executive Paul Reynolds maintained was a cheaper arrangement.

Click to enlarge. Excludes at-risk share rights. Olson is Telecom's CFO, Gilbertson its general counsel.

As Telecom flagged on Friday, Dr Reynolds was its highest earning employee, with total remuneration of $5.19 million - a big jump over 2010's $2.99 million, largely due to his bonus (foresworn the previous year afte the botched XT launch) being reinstated.

The company only broke out salary for a limited number of executives in its annual report, but they make for interesting reading.

Telecom Retail chief executive Alan Gourdie was second most compensated with total remuneration of $1.49 million - ahead of Chorus chief executive Mark Ratcliffe ($1.45 million), the man who lead the company's successful Crown fibre negotiating team.

David Havercroft – promoted to chief technology officer  following the XT debacle that saw then-CTO Frank March pointed toward the door  – also joined the ranks of the top earners. 

ABOVE: How Telecom staff numbers break down by division. Chorus also indirectly employs a field force of around 2500 through its sevice contracts with DownerEDI, Transfield and Visionstream. Most Telecom Wholesale staff will come under Chorus if the company split goes ahead. Click to enlarge.

Telecom shares [NZX:TEL] were up 0.2% to $2.52 in late trading.