Investors have given a tentative thumbs up to the appointment of Telecom's new boss - even if the company has had to offer an attractive pay packet to secure his talents.
Simon Moutter was Telecom's chief operating officer and now returns to the company after four years as chief executive of Auckland International Airport.
He will replace Paul Reynolds at the start of September and will receive a base salary of $1.35 million a year, and another $2.35 million in performance pay and shares if he meets certain targets.
Chairman of the Shareholders Association John Hawkins says he is pleased a New Zealander has come up through the ranks to take the top job.
Mr Hawkins says Mr Moutter's salary may seem high to many people, but Telecom is one of country's largest listed companies, and it needs to offer an attractive package to secure the best talent.
He says it will be in Mr Moutter's interests to grow the company as a significant proportion of his incentive package is in shares.
Milford Asset Management executive director Brian Gaynor says the pay package seems reasonable, as Mr Moutter has a good track record leading big companies, and he is very used to operating in regulated sectors.
"I think shareholders will be more than happy that they've got the right man ... from what we know, that's exactly what Telecom has achieved."