Telecom New Zealand CEO Takes Bonus Cut

Chief Executive of Telecom Dr Paul Reynolds speaks to shareholders during the Telecom New Zealand AGM at Ellerslie Events Centre on October 1, 2009 in Auckland, New Zealand. (Sandra Mu/Getty Images)

AUCKLAND, New Zealand—Telecom New Zealand chief executive Paul Reynolds has taken a cut of NZ$2 million (US$1.4 million) from his annual bonus due to a 0.2 decrease in adjusted earnings for the company.

A “performance incentive scheme” is designed to reward the CEO for reaching certain target levels. Dr. Reynolds received a NZ$900,000 bonus under the scheme, compared to last year’s NZ$3 million, according to AAP.

A Telecom spokesman told AAP that the company had a challenging year and Dr. Reynolds’ remuneration reflected that.

Dr. Reynolds has been CEO of Telecom Group since 2007, previously working as CEO of BT Wholesale in the United Kingdom, according to the Telecom website.

Dr. Reynolds has a base salary of NZ$1.75 million, and could receive NZ$2.1 million under a “long term incentive” component, taking his total salary to NZ$5 million (US$3.5 million), down from NZ$7.1 million (US$5 million) the previous year, AAP reported.

The long term incentive scheme is paid out if the company performs in a certain way and meets certain goals set by the board.

Dr. Reynolds received the Telecommunications Industry Association of America “Global Icon” award in 2006 for his leadership and innovation.