Long-standing Mighty River Power boss Doug Heffernan is to stay in the top job until the end of August next year but will not be paid a bonus for the extended term.
Chairwoman Joan Withers said Heffernan's contract had been extended to cover the full 2014 financial year of the soon to be listed power company. He will be paid a one-off retention payment of $500,000 to stay until the end of this year but the Mighty River Power board had already decided there would be no bonus retention or termination payment if his term was extended.
Heffernan was paid a total of $1.49 million in the 2012 financial year.
Withers said Heffernan, who has been chief executive since 1998, had committed through to the end of financial year 2014 - a period when there would be a lot of eyes on the company and its performance.
"This provides the Board with certainty and the ability to plan for the succession process and appointment of a new chief executive to take us through what will be a key phase in the further evolution of company."
Withers said the board would start recruiting for a new chief executive late this year.
Mighty River Power is due to list on the stock exchange in May after the Government sells up to 49 per cent of the company.