Gattung's $5m golden goodbye

By Helen Twose

Former Telecom head Theresa Gattung left New Zealand's biggest publicly listed company with $5.125 million in cash and 12 weeks annual leave owing.

The company's latest annual report, issued yesterday, shows Ms Gattung received a leaving payment of $3.9 million on top of her $1.25 million salary.

It included a performance incentive scheme of $1,525,000, a long-term incentive of $550,000 and special payments of $1,800,000.

The $550,000 was awarded on condition she does not go to a rival company. She also received $287,516 holiday pay.

Ms Gattung left Telecom in June after 12 years - eight as its chief executive - to take a break horse riding in South America.

She is yet to announce her next move, but just before her departure she told the Herald she had had all sorts of employment offers from around the world - "some more surprising than others ... but it's going to take some time and I want to give it some time, too."

Telecom also paid outgoing chief financial officer Marko Bogoievski a bonus payment to ensure he did not leave the company during the search for Ms Gattung's replacement.

The Sydney Morning Herald reported today that Mr Bogoievski received a $819,700 bonus to ensure he stayed on until the induction of Scotsman Paul Reynolds, who is due to take over Ms Gattung's old job at the end of September.

Mr Bogoievski also received a salary of $2.36 million in the year to June 30, Telecom's annual report showed.

Last month Mr Bogoievski, 45, announced he would leave the company in January after seven years as chief financial officer.

Acting chief executive Simon Moutter was given a special payment of $250,000 for staying on during the search for a new chief executive, on top of his annual salary of $1.71 million.

The company said the two executives were paid the bonuses because they had "critical knowledge and expertise essential to retain through a period of significant change".

Mr Reynolds will be paid a base salary of $1.75 million, plus a $1.75 million performance incentive each year. This may be topped up with a long-term incentive of up to $1.75 million in performance share rights.

- Additional reporting NZPA

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