Telstra CEO Pay Cut After Store Misconduct
The Chief Executive of local telco, Testra, plus two other executives have had their pay cut by ten percent, following sales misconduct at some of its partner stores.
Reported by The Australian, Chairman John Mullen revealed a “small number” of its partner stores – operated by third-party licence agreements – were found to have sold mobile phones and plans to customers unable to afford them, disclosed at the company’s AGM.
Telstra’s board exercised discretion to reduce the three executive’s payments collectively by $758,000, as a result of issues related to the store misconduct.
The board asserts responsibility “ultimately stops” with company leadership, justifying its remuneration decision despite the executives not personally exerting the misconduct.
Telstra states the misconduct represented around 100 customers out of nearly ten million, and around 100 devices out of the two million sold per year.
Resultant debts from the conduct breach have reportedly been refunded or waived, and the telco has accepted responsibility and is cooperating with the ACCC whilst implementing prevention programs.