Moutter will take over the role on September 1.
Moutter is currently CEO of Auckland International Airport. He has previously held senior roles at Telecom, including Chief Operating Officer. Prior to that he was Chief Executive at Powerco.
"Simon's knowledge of the telecommunications industry in New Zealand is strong and deep, and he is a proven CEO of a significant listed organisation,'' said Mark Verbiest, Telecom Chairman in an announcement this morning.
"He has also demonstrated that he can deliver growth in a challenging environment by transforming the customer experience at Auckland International Airport.
"As such, the Telecom board is confident Simon has the right skill-set to lead Telecom as it adapts to the opportunities and challenges driven by significant changes to its structure and operating environment.''
"The recruitment process has been extremely robust, conducted over a period of several months, and many high calibre candidates were attracted to the role.
Ultimately the board was unanimous that Simon was the best candidate, and we are delighted to have secured his services,'' said Verbiest.
"It is also pleasing that the best candidate for the job has been shown to be a New Zealander.
"Simon has a proven ability to lead companies in developing and delivering compelling services for customers.
"He was instrumental in the transformation of Telecom in the early 2000s, where the company pushed strongly into the IT services sector with the acquisition and expansion of Gen-i, the turnaround of Telecom mobile, and the roll-out of nationwide broadband services.''
In the same release, Moutter said he was excited to be returning to Telecom.
"I feel privileged to be selected to lead a resurgent Telecom as it reshapes for success in an even more dynamic communications services market post the demerger.
"I am looking forward to returning to the telecommunications industry, where Telecom, now subject to significantly less regulation, is free to focus on delivering world class products and services to our customers throughout New Zealand,'' he said.
Moutter will receive a base salary of $1.35m, and he will also be eligible to receive short and long term incentives.
He will receive an annual short term performance incentive of $750,000 in cash if he meets the targets set by the board. He will also receive shares to a value of $600,000 for achievement of those targets, with the shares received as part of this performance incentive restricted from sale for two years.
The total value of the incentive payment and share grant may increase if Mr Moutter significantly exceeds the targets set by the board.
Moutter will also be eligible for $1m in share rights annually, as his long term incentive. The vesting of these share rights will typically not occur until three years after they have been granted, and vesting is subject to meeting financial and shareholder return performance hurdles to be determined by the board.
In all cases, the performance targets will be closely aligned to the delivery of shareholder value.
Moutter will also receive a one-off grant of share rights on commencement with a value of $750,000. This grant vests in two tranches; the first half after 12 months and the second half after 24 months.
"This package represents the market rate for a CEO position of this magnitude,'' said Mark Verbiest.
"While Telecom is a smaller company than it was following the Chorus demerger, it retains a significant level of scale, challenge and complexity and the package reflects that. Telecom is currently the largest listed company by market capitalisation on the NZX.''
