Telstra to consider executive pay overhaul as investors strike against board
Telstra shareholders have put the company’s board on notice during its annual general meeting.
Telstra Chairman John Mullen expressed his disappointment after more than 60 per cent of shareholders failed to approve the company’s remuneration report.
It means the telco receives its first “strike” over executive pay.
If more than 25 per cent of shareholders vote against the remuneration report at next year’s meeting, it would constitute a second strike and trigger a forced spill.
Australia and New Zealand Research boss at Institutional Shareholder Services Vas Kolesnikoff tells Ross Greenwood executives “misaligned with the results”.
“The bottom line is, shareholders look at this and they say, ‘We’ve lost half our money.’
“It’ not as if profitably is going up tremendously to be awarding these type of bonuses.
“We’re not saying the executives are doing a really poor job, they’re just misaligned with the results.”
Click PLAY below to hear the full interview
Ross also speaks to First Super CEO Bill Watson who says executives are “certainly” misaligned.
“We believe chief executives, managing directors, get paid way too much.
“For every dollar that goes to a chief executive, it’s a dollar less that goes to shareholders.”
Click PLAY below to hear the full interview with Mr Watson