Telecom boss talks of need to reconnect

TELECOM has lost some of its ‘‘emotional connection’’ with many New Zealanders, chief executive Simon Moutter told investors at the annual meeting in Auckland.

However, his own salary and incentive package, under which he could earn up to $5.4 million this year, also failed to strike a chord with some shareholders.

One investor speaking from the floor drew scattered applause and a few ‘‘hear, hears’’ after saying Moutter’s base salary of $1.35m was sufficiently generous remuneration.

Anything extra appeared ‘‘a bribe’’ for him to do ‘‘more than his best’’. Many New Zealanders were getting by on $25,000 a year, she said.

Chairman Mark Verbiest responded to the criticism by saying the incentive packages offered by Telecom were needed to attract top talent and Moutter’s job was not one that could be done by an ‘‘average New Zealander’’.

Verbiest opened yesterday’s meeting by saying the board had instructed Moutter to complete his previously announced strategic review of the business this year, although it would be early next year before he would be able to talk about it in detail.

Analysts expect Moutter

to have a strong focus on simplifying the business and cutting costs now that it was competing on a level playing field with other telecommunications retailers.

However, Moutter expounded on the tone he set at the annual results briefing last month by saying it was also important for the company and the country that Telecom had an ‘‘ambitious plan for growth’’.

‘‘I didn’t come back to Telecom after a four-year absence to oversee a slow decline simply by cutting costs,’’ he told investors.

Moutter was chief operating officer of Telecom from 1999 till 2008, before taking the helm at Auckland Airport.

He said some outcomes of the strategic review were already clear, including the need to step up the drive to transform the staff culture to make it ‘‘solely customer-focused’’ and to ensure Telecom made decisions faster.

His first seven weeks back at the company had been ‘‘all about listening and learning with no preconceptions’’, he said. While initial observations were positive, there was still much to do.

Verbiest told shareholders that Telecom’s financial performance would be easier to follow after its demerger, but pointed out they had seen the value of their investment rise as a result of Telecom’s sharemarket split.