Friday, 15 August 2008
Has Telstra crossed that 'bad taste' threshold?
Telstra CEO Sol Trujillo has recently had his salary package increased by $1.6million to $13.39million.
This works out at around $114,000 for every percentage point increase in company annual net profit for the 2007-08 fiscal year.
Now Telstra is not really doing as well as it has in the past, so why is it heaping enormous cash bonuses and incentives, shares and options to buy on senior executives?
More importantly - why is its principal shareholder, the Commonwealth, not putting a brake on these huge payouts?
Stephen Mayne predicts; It now increasingly looks like Sol could yet reach gross payments and share profits of $100 million from his 5 year transformation story.
I don't care how business savvy a CEO is; no-one could possibly 'earn' or deserve that sort of money.
The Telstra board wins the 2008 Bad Taste Business Award as far as I'm concerned.
Labels:
economy,
ethics,
privatisation,
telecommunications
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