Telecom CEO to resign after demerger

Telecom CEO Paul Reynolds has announced he will resign from the company upon completing the demerger from network arm Chorus.

Reynolds says signing off the demerger next year will bring 'a natural conclusion' to the transformation programme the company's board hired him to lead.

"I am excited by the challenge of completing the establishment of a new industry structure that is unprecedented in the telecommunications world," Reynolds says, "and leading Telecom into this new and important era.

Commentators had already speculated Reynolds would depart the company following the demerger. Board chairman Wayne Boyd will also step down.

Reynolds says he hasn't developed any plans for the future, 'but I certainly aim to retain strong ties with New Zealand'.

Chorus CEO Mark Ratcliffe confirmed last month he will stay with the network company following the demerger.

The government okayed the split yesterday, leaving only a shareholder vote before it is confirmed.