Howard foists Cousins onto Telstra, despite strong opposition

Stuart Corner
Wednesday, 15 November 2006 10:35

IT Industry - Deals

A week before the AGM, the peak superannuation body - The Australian Council of Superannuation investors whose members control funds worth $160 billion - recommended industry funds vote against Telstra's remuneration report at the AGM.

In his address to the AGM, Macek vigorously defended the board's remuneration policy. However many shareholders might have been confused by his justification of short term incentives awarded on the basis of performance towards the achievement fol on term goals.

He said: "A number of shareholders have expressed concern that a healthy short term incentive has been paid for a year when our profit and share price declined. That reaction is understandable. The key is having a clarity of understanding that the basis of the payment of this incentive was delivering on the key platform of the transformation strategy and that the transformation strategy is based on delivering long-term sustainable value."

Macek also staunchly defended the much-criticised pay deal of CEO, Sol Trujillo. "From the moment of his appointment, his remuneration has been the subject of media interest. We expect scrutiny. But criticism that we have not provided enough information about his remuneration is simply not true...I'm not aware of any chief executive officer in this country whose remuneration has been more widely and repeatedly published and analysed than Sol's."