David Thodey, Telstra's not-quite-$10m man

Stuart Corner
Tuesday, 09 June 2009 08:23

IT Industry - Strategy

The employment, contract for Telstra's new CEO, David Thodey, shows that, in his first year he could earn up to $9.2m if, unspecified, short and long term incentive targets are met.

His contract, lodged today with the ASX, reveals that he is on a base salary of $2m per year, including employer superannuation contributions and can increase this by 80 percent ($1.6m) in FY2009-2010 if unspecified short term target hurdles are met and up to a maximum of 160 percent ($3.2m) subject to conditions to be determined by the board.

In the same period he is also eligible to receive a long term incentive grant of up to 200 percent of base salary ($4m), subject to conditions determined by the board. All up, he has the potential to earn $9.2m in the year to 31 July 2010. His total package will be reviewed annually.

Unlike his predecessor, Sol Trujillo he is not on a fixed term contract but has been appointed until such time has he or the board terminate the agreement. Also, unlike Trujillo, who was required to give only 30 days notices, Thodey must, under normal circumstances, give six months notice if he plans to leave. Likewise, expect for dismissal for specific reasons, the board must give Thodey six months notice, or six months base salary in lieu of notice.