Telstra Chair Says Sorry For Exec Pay Rises – But They’re Sticking
Telstra chairman John Mullen has apologised to the telco’s shareholders for the telco’s latest round of increases in executive paypackets, despite the hefty slide in Telstra’s share price – which closed at $3.11 yesterday, down 10 cents.
But the board appears to have stopped short of cancelling the untimely rises.
“It has been a challenging year for Telstra as we address significant market pressures, the impact of the NBN and increased competition,” Mullen said yesterday.
“We set what we believed was a demanding plan for our management team in the face of these challenges and even though many of these were met, we recognise that this has not translated into positive outcomes for our shareholders.
“We recognise that, despite this action by the board, some shareholders still feel that our remuneration outcomes were either not sufficiently transparent or resulted in higher payouts than shareholders felt were reasonable.
“With hindsight, we recognise we perhaps did not provide enough transparency around some of the metrics that we adopted to measure management performance and the reasons as to why these were chosen. For this we apologise.”
In a separate letter to shareholders, Mullen said that, following next Tuesday’s AGM, “we will continue to engage with stakeholders, listen to their feedback and consider opportunities to further enhance the effectiveness of our reward structure.”