Former Air New Zealand chief executive Rob Fyfe will mentor Michael Hill International's new CEO Phil Taylor as he establishes himself in the role.

Fyfe has agreed to a two-year consultancy, and will be paid up to $16,000 per month for his services, Michael Hill said in a statement to the NZX.

Fyfe was CEO of Air New Zealand between 2005 and 2012.

Taylor was appointed to the role in March, having worked for Michael Hill since 1987 and had been chief financial officer since 2003. He became acting CEO last August after longtime chief Mike Parsell resigned. He is currently chair of merino clothing brand Icebreaker and a director of Michael Hill.

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Earlier this month, the company reported it had boosted annual profit by two thirds to A$32.6 million as its Michael Hill chain grew steadily in its main markets of Australia and New Zealand and recorded stronger growth in Canada, but posted wider losses in its troubled US business and its fledgling Emma & Roe chain.

The company said the past year was solid, "achieved on the back of steady performances by our Australian and New Zealand businesses, and a strong performance by our Canadian business."

According to Fyfe's Linked In page, he is a long-term admirer of founder Michael Hill, who he describes as "one of New Zealand's most enigmatic and successful entrepreneurs."

The dual-listed shares recently traded at $1.29, and are unchanged so far this year.