Auckland International Airport boss Simon Moutter will be taking up the mantle of both managing director and chief executive at Telecom, it was announced today, putting an end to weeks of speculation that Gen-i's Chris Quin would be filling outgoing head Paul Reynolds' shoes.
The appointment, which follows a global search that kicked off last December, is effective from September 1,
It marks a return to Telecom for Moutter, previously COO under Theresa Gattung. Prior to that he was chief executive at Powerco.
Simon Moutter said he was excited to be returning to Telecom.
Moutter said he was privileged to be selected to lead a "resurgent" Telecom post demerger.
“I am looking forward to returning to the telecommunications industry, where Telecom, now subject to significantly less regulation, is free to focus on delivering world class products and services to our customers throughout New Zealand,” he said.
Chairman Mark Verbiest said Moutter's knowledge of the telecommunications industry in New Zealand was strong and deep.
“He has also demonstrated that he can deliver growth in a challenging environment by transforming the customer experience at Auckland International Airport."
He said many "high-calibre" candidates were attracted to the role but ultimately the board was unanimous in selecting Moutter as their top choice.
“It is also pleasing that the best candidate for the job has been shown to be a New Zealander," he said.
"Simon has a proven ability to lead companies in developing and delivering compelling services for customers.
“He was instrumental in the transformation of Telecom in the early 2000s, where the company pushed strongly into the IT services sector with the acquisition and expansion of Gen-i, the turnaround of Telecom mobile, and the roll-out of nation-wide broadband services.”
As the head of Telecom, Moutter will receive a base salary of $1.35 million, plus incentives: an annual short term performance incentive of $750,000 in cash if he meets targets set by the board and shares to a value of $600,000 for achievement of those targets. These could be upped if he "significantly" exceeds targets.
Moutter will also be eligible for $1 million in share rights annually, as his long term incentive – and a one-off grant of share rights on commencement with a value of $750,000.
“This package represents the market rate for a CEO position of this magnitude,” said Verbiest.
“While Telecom is a smaller company than it was following the Chorus demerger, it retains a significant level of scale, challenge and complexity and the package reflects that."