Auckland Airport appoints Simon Moutter as next CEO

Auckland Airport today announced that Simon Moutter has been appointed its next Chief Executive. He will join the company within the next three months.

Simon's most recent position was Chief Operating Officer (Business) at Telecom New Zealand, where he led the company's business customer operations in New Zealand and in Australia. The five businesses within the group employ over 2,900 staff and have $2.2 billion in annual revenue.

He joined Telecom in 1999, from the position of Chief Executive at Powerco, where he was responsible for creating New Zealand's fourth largest electricity and gas distribution business at the time.

Simon will succeed Don Huse, who announced his retirement from this role at the Airport's annual meeting in October 2007. Mr Huse has held the position for the past five years.

Chairman of Auckland Airport Tony Frankham said he and the Auckland Airport board is delighted to have appointed Simon Moutter.

"We conducted an international recruitment search and are very pleased to be appointing Simon, with his unique experience leading key infrastructure businesses in this country, as our new Chief Executive.

Filling the role after the impressive performance delivered by Don Huse during his tenure was never going to be easy, however we feel confident Simon's skills are well suited to build on our achievements to date.

In his leadership roles Simon has a notable track record in building highly cohesive and effective senior management teams. This approach has delivered superior business results throughout the organisations he has led and increased market share in competitive environments.

His achievements make him the ideal person to lead the next stage in Auckland Airport's master plan as we progressively expand our facilities to handle up to 25 million passengers a year by 2025.

In addition, Simon's familiarity with both the telecommunications and electricity sector, two industries that have faced a changing regulatory environment in the past 10 years, will be of great value to the airport in the years ahead," Mr Frankham said.

Simon Moutter said Auckland Airport is very highly regarded, locally and internationally, as a dynamic and well run business.

"It's a fantastic opportunity to lead a local company that makes such a significant contribution to the New Zealand economy".

Simon, who lives in Auckland, is married with four children.

Ends

Editors note

A summary of Simon Moutter's career and key contract terms with Auckland Airport are set out below:

Curriculum Vitae

Simon Paul Moutter

Qualifications

• B.Sc. Bachelor of Science (Physics)
  Massey University
• B.E. (Hons) Bachelor of Engineering with Honours (Electrical and Electronics)
  University of Canterbury
• M.E. Master of Engineering (Electrical and Electronics)
  University of Canterbury.

Significant Career Achievements

• Steered Telecom's entry into the IT market to become the first Telco in the world to gain number one market share position in IT services and steered the resurgence of Telecom's struggling mobile business in 2003 - returning it to return to market share growth for the subsequent three years.
• Appointed to head up Telecom's New Zealand Business in 2002, a career goal many years in the making, then completed the shift from infrastructure leadership roles to sales, service and marketing leadership.
• Completed the corporatisation, expansion and re-positioning of a small, ex-Municipal Electricity Department and built it into a very successful, Top 4 Energy Distribution Company operating in the deregulated market in New Zealand.
• Youngest ever Manager (at that time) of a major power station in New Zealand.
• Successful establishment of an Engineering Consulting and Contracting business with a $million fee base whilst a young Graduate Engineer.
• Six publications in internationally recognised technical journals.

Awards

• 1986 Fulton-Downer Gold Medal, the Institution of Professional Engineers premier award, for best paper presented at conference.
• 1989 Evan Parry Award for best electrical engineering publication in IPENZ Transactions.

Career Summary

• 2006 - Recent: Chief Operating Officer (Business) - Telecom NZ Ltd
• 2002 - 2006: Chief Operating Officer - Telecom NZ Ltd
• 2000 - 2002: Group General Manager Network & International - Telecom NZ Ltd
• 1999 - 2000: General Manager Network Delivery - Telecom NZ Ltd
• 1992 - 1999: Chief Executive - Powerco Ltd
• 1991 - 1992: Station Manager - New Plymouth Power Station
• 1987 - 1990: MD / Owner - Electrotech Consultants Ltd
• 1983 - 1987: Electrical Engineer, Electricity Division - NZ Ministry of Energy

Summary of key terms of employment between Simon Moutter and Auckland International Airport Limited

The terms of Mr Moutter's employment with Auckland Airport, and in particular his remuneration package, have been agreed taking into account Mr Moutter's skills and experience, and market relativities.

Term

Mr Moutter is to be employed for an indefinite duration, subject to the termination provisions detailed below. Mr Moutter's employment with Auckland Airport will commence no later than 18 August 2008.

Remuneration

Mr Moutter shall receive the following remuneration package:

• a salary of $800,000 per annum, to be reviewed annually;
• a short term incentive of up to $600,000 per annum (reviewed annually) to recognise excellent performance in relation to both financial and non-financial aspects of Auckland Airport's performance; and
• participation in a long term incentive plan, the key terms of which are discussed further below.

Under the long term incentive plan, Auckland Airport shall grant Mr Moutter three million phantom options upon commencement of his employment with Auckland Airport. The phantom options are not securities issued by Auckland Airport and no securities will be issued by Auckland Airport to Mr Moutter on the exercise of a phantom option. Instead, when phantom options are exercised by Mr Moutter in accordance with the terms of the long term incentive plan, Auckland Airport is required to pay a cash amount (less tax) to Mr Moutter in respect of the phantom options being exercised. The cash amount in respect of each phantom option being exercised will be equal to the closing price of Auckland Airport ordinary shares on the NZSX on the business day immediately preceding the exercise date minus the sum of $2.20 (which is the notional exercise price for the phantom options).

The phantom options are exercisable by Mr Moutter as follows:

• Subject to the following paragraphs, Mr Moutter shall be entitled to exercise up to one million phantom options at any time after the date three years after his employment with Auckland Airport commences, up to a further one million phantom options at any time after the date four years after such commencement date, and up to a further one million phantom options at any time after the date five years after such commencement date.
• Once they become exercisable, phantom options shall remain exercisable by Mr Moutter for a period of two years from the date they become exercisable. Any phantom options not exercised by this time shall automatically lapse.
• Mr Moutter may not give an exercise notice in respect of any phantom option unless certain Auckland Airport total shareholder return targets have been achieved.
• If Mr Moutter ceases to be employed by Auckland Airport in certain circumstances, some or all of the phantom options will lapse and cease to be capable of exercise by Mr Moutter. This is discussed further below.

Termination

Mr Moutter may resign at any time giving at least four months' notice. Auckland Airport may terminate Mr Moutter's employment with four months' notice.

 If Mr Moutter's employment is terminated by Auckland Airport due to the redundancy of his position, he will receive a payment of 12 months' salary and pro rata payment of any short term incentive as redundancy compensation.

Auckland Airport may terminate Mr Moutter's employment if it considers that it has lost trust and confidence in Mr Moutter. In such a situation, Mr Moutter will receive a payment of 12 months' salary and pro rata payment of any short term incentive.

In addition to the above, if Mr Moutter's employment is terminated for reason of redundancy or loss of trust and confidence, he will continue to be able to exercise those phantom options which he has already become entitled to exercise at the relevant time. Mr Moutter will also immediately become entitled to exercise an additional number of phantom options. The number of additional phantom options which will become exercisable by Mr Moutter in such circumstances will be calculated on the basis of the proportion of time elapsed since the date of commencement of Mr Moutter's employment and the date on which Mr Moutter would have become entitled to exercise further phantom options, but for the earlier termination of his employment. If Mr Moutter's employment terminates for any other reason, he will remain entitled to exercise those phantom options which have already become exercisable, but all remaining options will lapse unless determined otherwise, in certain circumstances, by the committee of Auckland Airport directors established to administer the long term incentive plan.

If there is a fundamental change in the circumstances of Auckland Airport, such that Mr Moutter is no longer the most senior executive within the Auckland Airport Group, Mr Moutter may resign and shall receive nine months' salary and pro rata payment of any short term incentive as redundancy compensation. Mr Moutter has six months from the occurrence of the fundamental change in which to exercise this right.

Auckland Airport may also terminate Mr Moutter's employment without notice for serious misconduct.

Restraints

For a period of four months after ceasing employment with Auckland Airport, Mr Moutter may be restrained from being associated with any company acting in competition with Auckland Airport. This restraint of trade shall come into effect at Auckland Airport's election. If Auckland Airport elects to enforce this restraint of trade, it will pay Mr Moutter an additional four months' salary at the conclusion of his employment with Auckland Airport.

For a period of four months after ceasing employment with Auckland Airport, Mr Moutter shall be restrained from soliciting or otherwise dealing with Auckland Airport clients or customers, or soliciting Auckland Airport employees or contractors