Paul Reynolds takes the money and runs

Written By: - Date published: 11:14 am, July 4th, 2012 - 41 comments
Categories: capitalism - Tags:

$20 million. That’s how much Paul Reynolds pocketed during his disastrous 5 years as CEO of Telecom. You could have employed dozens of teachers and nurses over that period for that money. Instead, it all went to one man as the company he headed went down the toilet. What a broken system capitalism is. The kicker: the $1.75m goodbye gift, on which he got a $100,000 tax cut. Nice.

41 comments on “Paul Reynolds takes the money and runs”

  1. mike e 1

    Capitalism and Crony-ism are inseparable under this Govt.

  2. Kevin Welsh 2

    And after a six month extended break to recharge the corporate batteries, he will re-appear at his next corporate assignment earning twice as much.

  3. Jim in Tokyo 3

    Actually he ‘earned’ this money by effectively greasing the back-room machinations which ultimately saw the National government directly transfer $929m of taxpayer money to Chorus in a blatant end-around which made a bit of a mockery of the Government’s much vaunted ‘tender’ process.

    http://www.telecom-media.co.nz/releases_detail.asp?id=3775&page=1&pagesize=10

    • MrSmith 3.1

      Totally agree Jim, his tenure will be remembered as re-establishing telecom as the monopoly they once were, with the help of tax payers money and steven joyce, monopoly high speed internet coming to a town near you, profits going to Nationals mates.

  4. When Labour sold off Telecom I bought shares in the private company.
    At the time of sale it took three weeks to get a phone changed.
    As a part owner in the company I am satisfied with the progress and dividend that Telecom have provided, and the CEO’s remuneration

    • quartz 4.1

      As a part owner

      Lolz. Look at the big wheeler dealer.

    • DH 4.2

      “At the time of sale it took three weeks to get a phone changed.”

      Utterly false and a very common bad memory from pundits of asset sales. Connection times were down to days, often same day, when Telecom was sold and they did not improve noticeably after the sale.

      • Rob 4.2.1

        The ‘service’ that was provided by the old Govt owned Telecom was terrible.  Completely reactive, demeaning and bullying.  Faults calls were treated with derision and ‘customers’ were made to feel like idiots.

        This is exactly the behaviour that gets entrenched in a non-audited, fully protected, un-measured, lazy environment. 

        • DH 4.2.1.1

          Yet another with a bad memory. Telecom was a brand new company created as an SOE in 1987 and sold in 1990. When it was set up as a standalone telecommunications company the Govt set targets it had to meet, notable of which was connection times. They used to print regular reports on Telecom’s performance in the media and it is a fact that connection times were vastly reduced after it was made into an SOE. Service levels did not improve significantly after it was sold.

          It’s also well known that the new digital exchanges had the biggest influence on connection times and they were installed when Telecom was owned by the Govt.

          • Draco T Bastard 4.2.1.1.1

            …and it is a fact that connection times were vastly reduced after it was made into an SOE.

            There was some minor reorganisation but those connection times would have come down no matter what. The change from the old analogue to digital exchanges (started in the 1980s) would have seen to that.

            What Rob and Fortran fail to realise is that if we’d kept Telecom as a state service the services supplied would a) be cheaper now that what they are, b) we’d most likely have fibre to the cabinets already (again, started installing that in the 1980s, the private owners started taking it out and replacing with copper in the 2000s), and c) we wouldn’t now have to be paying billions extra in taxpayer $$$ to get that fibre to the home installed.

            The sale of Telecom is the perfect example of the dead weight loss of profit – and Fortran is one of the bludgers hanging around our neck.

            • Richard Christie 4.2.1.1.1.1

              Yep, most service improvements were due to the new digital exchange conversion, well underway before it became a SOE.
              Richard Preeble was probably the loudest of the liars stating improvements were due privatisation etc.

              • DH

                Hearing the old trope about slow connection times & bad service must be infuriating to those who worked for Telecom & its predecessor in the ’80s. It’s such a blatant falsehood that’s often trotted out by people in favour of privatisation, ever trying to make a silk purse from a sow’s ear.

      • McFlock 4.2.2

        didn’t the NZ govt invest millions of dollars into telecom upgrades just prior to the sale (dim memory – was in school at the time)?
               
        Oh,  and the three week thing is down from the six months that was prebble’s wet dream 15 or 20 years ago. Nice to see a tory catechism of faith become a pale shadow of its former self.
             
        One of these days the tory mind might even acknowledge reality – but then they wouldn’t be tories…
             
         

        • Kotahi Tane Huna 4.2.2.1

          “…but then they wouldn’t be tories…”

          Sad but true. lol

          • Rob 4.2.2.1.1

            Look,   carry on trying to turn the clock back and reviewing it like an endless summer evening.  But it was shit.  I had mates that worked for them and they even laughed about it.  Just like that other massive dung heap the Ministry of Works. 

            What’s sad but true is that you like it. 

            • DH 4.2.2.1.1.1

              What’s sad is the senile rambling of people who lost about five years of their memory. The old Post Office in the ’70s was a bit of a shocker for service but Telecom as an SOE sure wasn’t. It’s all recorded history, the reports on Telecom’s service levels can be found in newspaper archives.

              • McFlock

                Exactly – when the government ran a post office as a job-sink to keep unemployment low, service levels were down. When the government decided to run NZPost and Telecom as “enterprises”, they did very well.
                          
                Big surprise: when service isn’t as much of a priority as the general social good, service takes a hit. When profit takes a priority, the social good takes a hit. 
                           
                Oh, and two letters to illustrate the service efficiency of the private sector: “XT”. 

                • Rob

                  Telecom has had some shockers , I dont use them at home and at work , but here is a few letters following your theme –  Vodafone, 2 Degress, Orcon and a whole host other service centric competitors.

                  What the change did is finally put the purchaser at the centre of their business.

                  • Draco T Bastard

                    Wrong, the populace was always at the centre of the business.

                  • McFlock

                    They’ve all had outages, poor service or billing issues. And our rates are all too high for crap service.
                                 
                    The change to SOE changed the emphasis of the sector. From a wider social focus to a narrow balance-sheet focus. As you would expect if an efficient command structure goes from saying “consider the wider social costs” to saying “make a profit”.
                       
                    Asset sales served only to put profits in the hands of the already rich, rather than all taxpayers. 

                    • Colonial Viper

                      Economic infrastructure such as telecoms, banking, power and water need to be publicly owned.

                      Instead of having profits from them taken off our citizens and shipped offshore to enrich foreign shareholders.

            • Draco T Bastard 4.2.2.1.1.2

              I did work for them and we never laughed about it. We got stuck in providing the best service we could with the resources we had. The biggest problem we had was simple physical limitations – you can’t get a phone connected when there isn’t cable to the home.

            • Kotahi Tane Huna 4.2.2.1.1.3

              Dream on Rob. As DH points out, you are either deceitful or deceived, and those are the only two categories of tory.

            • Half Crown Millionare 4.2.2.1.1.4

              “Just like that other massive dung heap the Ministry of Works.”

              Yeah,

              You don’t know what you are talking about mate. I suggest you look up the building of the Clyde dam. One almighty fuckup by private contractors aided by, dare I say it, right wing fuckwits again, Muldoon and Bill (carlos days) Birch. . And how the then MOW came to the rescue
              This dam was part of the Think Big Fiasco, another right wing scheme to send New Zealand bankrupt.

              • Descendant Of Smith

                Anmd several truckies I know are quite open about the fact that MOW used thicker tar / bitumen on the roads so maintenance was less and roads didn’t cut up as much.

                They get pissed off being blamed for the road damage that occurscause the private contractors thin it down so they have ongoing repair work and continuing profit.

                Desert Road is another example of how it was open much more in winter when MOW had the responsibility – and more cheaply as well.

    • Herodotus 4.3

      You were lucky. In a development I am associated with. Chorus/Telecom signed off that the telecom reticulation HAD taken place 9 months later it was found out that only ducts were installed and that no hardware had ever been installed, even though Telecom had signed off on the work it still took another 3 months for the cables to be installed. Telecoms offer was for free cell phone calls for outward bound calls only, callers still had to pay to call in.

    • mike e 4.4

      Fartrain that was a deliberate ploy by the right wing to undermine Govt ownership..
      Before it was split it took as little as ten minutes in some case to get connected.
      Prices were very reasonable .
      after it was split from the post office $ 2 billion was borrowed to mainly up grade the rural lines network then teelcon was sold for 4 billion .Speculators had a feilday for years after this until their monopoly was broken.
      The first owners gouged prices( monopoly) the second owners gouged then the recent share holders lost buckets because telcon had been a monopoly so long it couldn’t do competition.
      Now Nactional has put them back in a monopoly situation again with HSB.

    • mike e 4.5

      Fatrain I’ve had shares in telecon as well when they were a monopoly how ever my business phone bills cost more than the profits I made out of the shares. Since David Cunliffe has broken the monopoly my ph bills have shrunk to a fraction of what they were.
      But I wisely got rid of my Telcon shares.

  5. captain hook 5

    hey he is a rugged individualist and a risk taker.
    yeah right.

  6. tsmithfield 6

    At least now you can change your subscription to other providers if you don’t like the amount Telecom pays its execs. Couldn’t do that when it was publicly owned.

    • McFlock 6.1

      Big effect that has.

      • Jim in Tokyo 6.1.1

        The problem is, that at least until the demerger in December 2011, with the exception of TelstraClear’s HFC network in Wellington, Christchurch and Kapiti the ‘competition’ has actually mostly just been reselling Telecom Wholesale services for a slim margin. And even if you used a provider who had jumped though the hoops to install their own ADSL+ gear into a (rented) space in a Chorus owned cabinet or exchange, then Telecom Wholesale still owned and charged for the back-haul.

        This situation was supposed to improve with the Chorus demerger, but since Joyce decided to give Chorus 70% of the UFB rollout then we seem to be forever locked into trying to regulate pricing on a monopoly infrastructure provider.

        And lets not forget that after all is said and done, regardless of your provider, all your international data still has to travel over Southern Cross Cable Networks, which while incorporated in Bermuda for tax purposes, is in fact 50% owned by… you guessed it … Telecom.

      • Draco T Bastard 6.1.2

        Actually, it does have an effect – massive increase in costs due to duplication of the bureaucracy and physical plant. Also, we’re now losing more than we were before the mid 1980s reforms due to the dead weight loss of profit also being massively duplicated.

    • felix 6.2

      Meh. I’d prefer a bit of democratic accountability, thanks.

    • mike e 6.3

      Tsm the cost of my phone bills when the govt owned the ph company were a fraction of what they were under private monopoly hands.that was right up til 2007.
      The Silly Monetarist.You may have been able to change companies to Clear only initially but the value and service was not any better. because they had to lease Telecon lines and Telecon being a private Monopoly gouged NZ plenty.
      Thanks to Steven Joyce and Shonkey their at it again by creating a duopoly with UFB we will have to wait for another Labour Govt to break this Duopoly that National have created.

  7. Blue 7

    Who cares what a private company pays its staff. If you’re unhappy, use another provider. Go and make a moral stand.

    • Colonial Viper 7.1

      And the strongest moral stand is to nationalise the company and get rid of corporate freeloaders.

      Who cares what a private company pays its staff.

      I fucking care. We don’t need this corporate greed in NZ. 91% income tax on all income more than 10x the median wage thanks.

      • mike e 7.1.1

        Corporates are just operating a pyramid scheme eventually scamming all the money and power to the 1% .The small time enablers are the reasonably well off just play along until they slide down the ladder and are ripped off by those they defend.

      • BR 7.1.2

        You can “fucking care” all you like.

        It is none of your business how much a private individual or group of individuals chooses to pay another, or for what reason.

        End of story.

        Bill.

        • mike e 7.1.2.1

          Bullshit Reasoner.So its all right for Private companies to monopolize the market thats whats happening in the world today and use any under handed trick they can get away with.
          Lie more(LIBOR)
          insider trading pyramid schemes ponzi schemes black mail and bribery and stalking.
          Murdoch
          Madoff’S
          Diamond
          GSK
          Lehman BrO’s
          Merrill Lynch
          BOA
          AIG
          Goldman Sachs
          Morgan Stanley
          etc.
          etc.
          etc.

    • mike e 7.2

      Blue as a former shareholder. Lucky I am no longer one.On Reynolds watch( not the Gold one he received) Shares in Telecon halved in value profits halved in value from this guy who was on 2 and a half times the salary of the previous CEO Plus a very generous share package.
      Telecon’s service has been atrocious Filipino call centres xt outing because of underinvestment.
      I gave them a wide birth because my ph bills were heading up to $700 per month I changed to vodafone my bills went down to $120 a month same usage.
      Telecon has been a disaster for NZ.
      Now Joyce is handing them UFB on a plate.

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    When National was in power, they were very keen on Public-Private Partnerships (PPPs) - basicly, using private companies to finance public infrastructure as a way of hiding debt from the public. They were keen on using them for everything - roads, schools, hospitals. But as the UK shows, that "service" ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • A Movement That No Longer Moves.
    Moving And Shaking: There was a time when people spoke matter-of-factly about the “labour movement” – a political phenomenon understood to embrace much more than the Labour Party. Included within the term’s definition was the whole trade union movement – many of whose members looked upon the Labour Party as ...
    1 week ago
  • NZ ‘left’ politically embracing extreme postmodernism
    by Philip Ferguson Much of the left, even people who formally identify as marxists, have collapsed politically in the face of postmodern gender theory of the sort pioneered by American philosopher Judith Butler. For Butler even biological sex is socially constructed. “If the immutable character of sex is contested, perhaps ...
    RedlineBy Daphna
    1 week ago
  • The obvious question
    The media is reporting that the (alleged) Labour party sexual assaulter has resigned from their job at Parliament, which means hopefully he won't be turning up there making people feel unsafe in future. Good. But as with everything about this scandal, it just raises other questions. Most significantly: why the ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • The moment I found out that you found out, I acted swiftly
    By Prime Minister Jacinda Ardern I am every bit as angry as you are. I am every bit as disappointed as you must be. The people with power, oversight and the ability to do something about these processes within the Labour Party should be ashamed. Whoever those people are, I ...
    The CivilianBy admin
    1 week ago
  • This is why people hate property developers
    Property developers think there is an "oversupply" of houses in Auckland:High turnover rates and falling prices may be a sign that there are too many new houses going in to some parts of Auckland, commentators say. [...] Property developer David Whitburn said there was a "bit of an oversupply" in ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Australia to Pacific: “Fuck you, you can all drown”
    World leaders are meeting in New York in two weeks for the 2019 Climate Action Summit, where they are expected to announce new and more ambitious targets to stop the world from burning. But the Australian Prime Minister won't be there, despite being in the USA at the time:Scott Morrison ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Implausible ignorance
    Labour Party president Nigel Haworth resigned yesterday over the party's sexual assault scandal. But while that's good news, its unlikely to take away the stench of a coverup. Because according to Paula Bennett in Parliament yesterday, pretty much everyone in the Prime Minister's office was involved as well:I have been ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Labour’s Fatal Flaw.
     Two-Faced? Labour insiders' commitment to the neoliberal status quo puts them at odds with their party’s membership; its trade union affiliates; and a majority of Labour voters, but this only serves to strengthen the perception they have of themselves as a special elite. Among the lesser breeds, they’ll talk up a ...
    1 week ago
  • Ten reasons the Tories do NOT want an election
    There has been a lot of talk about Boris Johnson wanting an election, and he has blustered with great gusto about 'chicken' Jeremy Corbyn refusing one, but I think there are many reasons why he is secretly glad he has been refused the opportunity:The Tories are an utter rabble,tearing themselves ...
    1 week ago
  • Prorogation Illegal, rule Scottish judges
    Scottish appeal court judges have declared that Boris Johnson’s decision to suspend parliament in the run-up to the October Brexit deadline is unlawful. The three judges, chaired by Lord Carloway, Scotland’s most senior judge, overturned an earlier ruling that the courts did not have the powers to interfere in the prime ...
    1 week ago
  • Let me explain what I meant by Everyday New Zealanders
    By Simon Bridges. The following is a press release from the office of Simon Bridges, leader of The National Party. Key ora, New Zealand. Happy Maori Language Week. Look, I’m writing to you today because I want to clear something up. There’s been a lot of kerfuffle around some things ...
    The CivilianBy admin
    1 week ago
  • Yes, the SIS is subject to the Public Records Act
    I understand there's some stuff going round about how the SIS "was removed from the list of public offices covered by the Public Records Act in 2017". The context of course being their records derived from US torture, which will be disposed of or sealed. The good news is that ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • An evidence-based discussion of the Canadian fluoride/IQ study
    Dr. Christopher Labos and Jonathan Jarry discuss the recent Canadian fluoride/IQ research. They provide an expert analysis of the paper and its problems. Click on image to go to podcast. The critical debate about the recent ...
    1 week ago
  • Climate Change: Australia in denial
    Australia is burning down again, and meanwhile its natural disaster minister is denying climate change:Australia’s minister responsible for drought and natural disasters, David Littleproud, has said that he doesn’t “know if climate change is manmade”. Clarifying earlier comments that the question is “irrelevant” when considering the Coalition government’s response to ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Philippines activist speaking on the Duterte tyranny
    Auckland Philippines Solidarity is excited to host Professor Judy Taguiwalo for a speaking tour of NZ in September. She is a well-known activist in the Philippines and was a political prisoner under the Marcos dictatorship. Professor Taguiwalo briefly served as a Cabinet member under President Duterte but was forced from ...
    RedlineBy Daphna
    1 week ago
  • Disgust
    I have no special insights to offer on the Labour sexual assault coverup. All I have is disgust. Disgust that an organisation could fail its people so badly. Disgust that they punished the victims rather than the perpetrator. Disgust that its party hacks are apparently blaming the victims for demanding ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Speak Up for Women calls out Greens’ censorship
    This open letter to the Green Party was penned after an opinion piece by Jill Abigail, a feminist and founding member of the party, was censored by the Greens’ leadership. (Redline has reprinted her article here).The intolerance of the Green Party leaders and their acceptance of the misogyny of gender ...
    RedlineBy Daphna
    1 week ago
  • Member’s Day: End of Life Choice, part 3
    Today is a Member's day, and David Seymour's End of Life Choice Bill continues its slow crawl through its committee stage. They're spending the whole day on it today, though the first hour is likely to be spent on voting left over from last time. After that they'll move on ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Flight to Los Angeles turned back after passengers decide they don’t want to go anymore
    An ambitious plan to fly to Los Angeles petered out into a brief sight-seeing trip and a desire to return home and get some sleep before work tomorrow. Air New Zealand has confirmed a flight to Los Angeles last night was turned back about a quarter of the way into ...
    The CivilianBy admin
    1 week ago
  • Indigenous Futures: defuturing and futuring – an analytical framework for policy development?
    There appears to be consensus – by omission – that the concept of indigenous futures should be accepted at face value. So I scavenged the internet to see if I could locate an academic descriptor or a framework around how we think about it as a concept, and whether it ...
    EllipsisterBy Ellipsister
    1 week ago
  • Cadbury rumoured to be releasing the Pineapple Trump
    Here’s another novelty chocolate to shove in your gob, New Zealand Cadbury could be seeking to make itself great again with a rumoured new release: Pineapple Trumps, a spin on its classic chocolate-encased pineapple treat and do-it-yourself tooth remover. The global confectionery manufacturer and bumbling “before” character in an infomercial, ...
    The CivilianBy admin
    2 weeks ago
  • The coming resource war.
    During my time in the Pentagon I had the privilege of sitting down with military leaders and defence and security officials from a variety of Latin American nations. Sometimes I was present as a subordinate assistant to a senior US defence department official, sometimes as part of a delegation that ...
    KiwipoliticoBy Pablo
    2 weeks ago
  • Māori Language Week with The Civilian
    Kia ora, Aotearoa. It’s that magical time of year. Te Wiki o te Reo Māori. In English, the week that frightens talk radio. As you probably know by now, all your favourite media outlets are participating, some more successfully than others. Stuff has changed its name to Puna for the ...
    The CivilianBy admin
    2 weeks ago
  • Will Horizons act on climate change?
    Local body elections are coming up next month. And it looks like all Palmerston North candidates for Horizons (the Manawatu-Whanganui Regional Council) want to take action on climate change:Climate change is set to be a key issue in Palmerston North for the next three years if those wanting to get ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • BORA reform is stalled
    Eighteen months ago, the government promised to strengthen the Bill of Rights Act, by explicitly affirming the power of the courts to issue declarations of inconsistency and requiring Parliament to formally respond to them. So how's that going? I was curious, so I asked for all advice about the proposal. ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Corbyn and Brexit
    As the Brexit saga staggers on, the focus is naturally enough on the Prime Minister and his attempts to achieve Brexit “do or die”. But the role played by the Leader of the Opposition is of almost equal interest and complexity. The first problem for Jeremy Corbyn is that he ...
    Bryan GouldBy Bryan Gould
    2 weeks ago
  • A ditch for him to die in
    Last week, English Prime Minister Boris Johnson boldly declared that he would rather die be dead in a ditch than delay Brexit. Unfortunately for him, the UK parliament accepted the challenge, and promptly dug one for him. The "rebellion bill" requires him to ask for and secure yet another temporary ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Warning! Warning! Danger Jacinda Ardern! Danger Marama Davidson! Warning!
    Lost In Political Space: The most important takeaway from this latest Labour sexual assault scandal, which (if I may paraphrase Nixon’s White House counsel’s, John Dean’s, infamous description of Watergate) is “growing like a cancer” on the premiership, is the Labour Party organisation’s extraordinary professional paralysis in the face of ...
    2 weeks ago
  • Union solidarity with Ihumatao land occupation
    by Daphna Whitmore Every Sunday for the past two months unionists from First Union, with supporters from other unions, have set out to the Ihumatao land protest, put up gazebos and gas barbeques, and cooked food for a few hundred locals and supporters who have come from across the country. ...
    RedlineBy Daphna
    2 weeks ago

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