The company's annual report released yesterday detailed packages including over $5 million for chief executive Paul Reynolds and a total of over $11m for six other top executives.
The report for the financial year ending June 30 reported a 43.9 percent slump in the company's profits.
Engineering Printing and Manufacturing Union (EPMU) national secretary Andrew Little said Dr Reynolds' payment could not be more insulting to the engineers.
Up to 1000 telecommunications engineers around the country staged a one-day strike this week as part of continued industrial action over plans to make the engineers owner/operators.
The engineers want their current employer, Telecom's network division Chorus, to abandon a contract agreement with Australian company Visionstream in Auckland and Northland.
The annual report put Chorus chief executive Mark Ratcliffe's package at over $1.9m, while the packages of five other executives ranged from $1.4m to nearly $2.6m.
Chief financial officer Russ Houlden's package included $281,273 for accommodation and "some relocation and personal travel costs".
Telecom board chairman Wayne Boyd defended the payments, saying the company had met all its financial targets in the year to June 30, while making significant progress in other areas.
"Under Paul Reynolds' leadership, our executive team has delivered on the demanding objectives set by the board over the past year," Mr Boyd said.
He said Telecom had gone through unprecedented upheaval over the past three years while moving into an era of operational separation, and had responded well.
Mr Boyd said New Zealanders relied on the telecommunications infrastructure and in the year to June 30, Telecom's total capital investment amounted to $1.3 billion.
The company had successfully launched its XT mobile network in May and customer uptake had exceeded expectations.
"Progress on our fibre-to-the-node rollout is well advanced, bringing fast broadband to more New Zealanders than ever before."
Mr Boyd said customer satisfaction had also improved.
"Against this backdrop of achievement, the rewards given to our executive team are fair recognition for the outstanding job they have done as leaders."
Mr Little said while hundreds of frontline Telecom workers were having their livelihoods and work rights stripped from them, Telecom was being driven by shameless greed and a disregard for the network they were entrusted with.
Under Visionstream, engineers would have to provide their own equipment and transportation, which the EPMU said would leave many staff jobless and put the future of New Zealand's telecommunications network at risk.
Labour MP Darien Fenton agreed Mr Reynolds' package was a "bitter pill" for workers facing lay-offs with no redundancy pay.
"While some of the lines engineers have already been laid off without redundancy pay, others will be losing their jobs in a month's time," Ms Fenton said.
"The exorbitant salary sends a terrible message to Telecom's workers. It also sends a strong message that there are two standards of fairness -- one if you are a highly-paid executive and another if you are an ordinary worker."
