Former BT exec appointed Telecom NZ CEO

Gattung leaves tomorrow

Telecom New Zealand today announced that Dr Paul Reynolds has been appointed as its CEO, effective from late September 2007.

Reynolds is currently CEO of BT Wholesale, the wholesale business of UK-based telecommunications and IT company BT Group.

He joined BT in 1983 after completing a doctorate in geology at the University of London, and has served on BT's Board of Directors since 2001.

Reynolds succeeds Theresa Gattung, who is leaving tomorrow after 12 years at the company, the past eight as the company's CEO.

Simon Moutter has been appointed as acting CEO until Reynolds formally takes up his role.

Moutter has held a variety of roles at Telecom, including that of Chief Operating Officer (COO).

Chairman Wayne Boyd said he and the Telecom Board were delighted, after a global recruitment process, to have secured the appointment of Reynolds.

"Globally there are few leaders in the telecommunications industry with Paul's combination of skills, knowledge and experience," Boyd said.

In 2006, the Telecommunications Industry Association of America awarded Reynolds its 'Global Icon' award for his leadership and innovation.

"I'm passionate about the telecommunications industry and its power to transform the way people interact, live, work and play," Reynolds said.

The remuneration package offered to Reynolds is linked to the performance of the Telecom Group so that higher levels of performance attract higher rewards, and is aligned with shareholder outcomes.

There are three components to Reynolds' remuneration package, which will be reviewed annually. There is a base remuneration of NZ$1,75 million per annum.

Plus an annual performance incentive with a target value of NZ$1,75 million.

The actual short term incentive awarded will be determined by the Board based on Telecom and CEO performance against annual performance criteria.

The Annual Performance Incentive award will be delivered 60 percent in cash and 40 percent in restricted shares. There is also a long term incentive of $1.75 million subject to shareholder approval.

The employment agreement is for an indefinite duration.