Murray McCully
National MP for Albany
Rodney Hide
ACT MP
26 April 2002
NZ Post Chair Dr Ross Armstrong has been accused by MPs Murray McCully and Rodney Hide of "a calculated attempt to
deceive" over the salary package of NZ Post chief executive Elmar Toime. Material released today by the Finance and
Expenditure Select Committee includes a letter from NZ Post Elmar Toime, following questions from the Committee.
Mr Toime's letter explains the structure of his remuneration, including an "at risk" component and states "For that
reason, my remuneration could range from $570,000 to $1.1 million, depending on the level of at risk payment made."
Yet in a press release dated 10 February, in response to allegations that Mr Toime's salary had been increased to a
maximum of $1.2 million, Dr Armstrong "strongly denied" the claims. He said "Taking into account the 2.5% increase to
fixed remuneration and even allowing for the maximum possible achievement in the "at risk" component, Mr Toime's total
remuneration for 2002 will be well below the $800,000 figure recommended by PriceWaterhhouseCoopers as the bottom end of
the salary band."
"That statement was a calculated attempt to deceive," said Messrs McCully and Hide today.
"From examining the detail of Mr Toime's letter it is clear that Post made their claim only by not counting any element
of this year's at risk salary component on the basis that it would be paid next year. Yet any reasonable person reading
Dr Armstrong's statement would be led to believe that all elements of the package, including this year's at risk salary
was included."
"The 2001 Annual Report records a top salary band of $540,000 to $550,000. Yet Mr Toime's letter concedes that his
remuneration "could have ranged from $560,000 to $1 million. These are huge discrepancies which can only be the result
of a calculated plan to deceive."
"This is a further illustration of the slippery, evasive, deceitful conduct which has characterised NZ Post's dealings
with Parliamentarians and select committees and it falls well short of the standard which we are prepared to accept."
Ends