Telecom’s remuneration conduct is obscene. Increasingly it resembles Spot the dog on his skate board sliding over very thin ice. The thin ice is societal tolerance and Telecom is the dog!
Telecom acquiesces in biased employment practices, as we are seeing in my rohe, Northland/Tai Tokerau. In this area it is trashing its own brand. At a time when the whole country is belt-tightening and other corporate leaders are observing restraint they are doing the opposite.
Theoretically CEOs are rewarded on the basis of results. The stratospheric salary of Telecom’s CEO is nauseous. There is no way that he represents $7.5 million of value to either shareholders or society. At the same time the economic prospects of Northland employees have been disconnected by an overbearing, self-serving, bogus type of governance masquerading as a board of directors. Telecom obviously believes it can hoodwink its shareholders but it neglects at its peril the importance of societal sanctions as to what is proper commercial conduct.
I fear in the North that the livelihoods of Telecom employees are being screwed to embellish mahogany panelled lifestyles.
Not just the North. I could tell you the under-hand practices that Telecom forces its contractors into. The network, the people who work on the network and the customers all suffer thru their greed.
the question is “who, as in a name, offered the guy this package”?.
I hate the bonus culture, even though I benefit from it, but in this case the bloke is under huge pressure, as is the Air NZ bloke and others I guess, and if he/they can keep their companies solvent during these troubled times, then all credit.
When things are going well in the world, as it has for the past 9 years, these guys demand huges bonuses based on profits which their companies get.
As far as I’m concerned, they must choose when to take the money .. when profits are up or keeping things ticking over during these troubled times .. not both.
Jabba, I guess it was Wayne Boyd, the Telecom chairman?
mmm, I wonder if Wayne would like to become a director of the Company I work for .. seems a nice guy
Shane, there are many people out there who think you are overcompensated. Especially when you were double-dipping…. However, it is over the top and just plain greedy.
Interesting appeal to the envy market, Mr Jones.
I don’t know if the Mr Reynolds is worth his pay packet. It is fair to say though that the Telecom CEO’s job is one of the largest CEO positions in the country, and it needs to be considered alongside international benchmarks. I suppose the real verdict is not whether you as a politician approve of the salary, but whether Telecom shareholders are comfortable with it.
I’m not sure what your concern is, however. Labour was in government for nine years, and didn’t once try to restrict senior executive pay packets.
On the Weldon Index that I created, Reynolds should be getting $45 million a year. That goes to show how large Telecom actually is. Forget international comparisons, look locally at what other CEO’s get for running far smaller and easier operations.
Any time you wish to run it Shane, step on up….oh that’s right….you can’t.
“Interesting appeal to the envy market, Mr Jones.”
Referencing the politics of envy has been overused as a means of stifling lgitimate comparisons and complaints, Mr Ellis. A undeniable salary chasm has opened between upper management levels and lower paid workers throughout the capitalist world over the last boom. It is almost feudal,with obvious implications for well-being. Home ownership, health, dentistry and other once taken for granted elements of social well-being are increasingly not available at the required levels for the lesser paid.
This is acceptable to you and Cactus Kate, no doubt, Mr Ellis? Perhaps you don’t see less “valuable” workers as being part of the commonweal in the way that real people like bankers, lawyers and auditors are?
Of course, management capture is what service deliverers such as teachers and nurses were accused of during those halcyon days when Roger Douglas was performing his sleight of hand to the applause of the bean counters and the little legal ferrets who assisted him.
And CEOs make all the difference, don’t they? Look at the stellar economic performance of NZ over the last decade, with the major part of our economic performance coming from cow tits and tourist trails.
Galeandrea
Oh yes lets sack all the CEO’s and let the lower paid workers run the company. Grand idea.
Shane has described a real world situation here, us Far Northeners are going to see our telco infrastructure deteriorate further, let alone be upgraded to 21st century standards, if skilled technicians are driven from the industry. Even Nat Hon. John Carter is advising line workers not to sign Visionstream’s dodgy deal (at least he is until head office sits on him). Timmy and the rest, you can drop the “Labour had 9 years” line, each govt. in office is responsible for its own actions. Spikey, lower paid workers could hardly do worse than a number of CEOs including the unpleasant Mr Fyfe at Air NZ. That company would not still be trading if the workers of this country had not bailed it out.
Relic
Had the Government not decided to bail out AirNz in 2001 then it was already talking to other airlines such as Singapore to become the corner stone investor. So to say it would not be trading is wrong
As a shareholder(owner)of Telecom I continue to be quite satisfied with the performance of the CEO, and thereby his remuneration package.
Is Shane an “owner” – if not belt up, or buy shares and earn a right to complain.
paulus, you obviously have an easy come, easy go appraoch to dosh. the question is how does this CEO represent $7.5 million of value? also Telecom is part of our economy, in a particularly non comptetiive sector, not just part of your portfolio. Shrinking no doubt!
kate, telecom is losing friends in the North. Obviously their commercial environment is challenging but they are in a privileged position and unless they act in a more Kiwi way then why should we shrink from calling them on their decisions. Public company means just that!
It would be trading the same way the Eagle Boyz is still trading.