TLS 1.01% $3.94 telstra corporation limited.

a sinking ship and capn and co steal the life raft

  1. 4,833 Posts.
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    a sinking ship and capn and co steal the life rafts.

    it's often said that the top echelons take the till before the company falters. do i smell rats deserting a sinking ship ?

    buzzards. but then it was a monopoly wasn't it.

    you left telstra yet ?

    40



    Sol and Telstra six to get $11.6m
    Email Print Normal font Large font Kate Askew and Matt O'Sullivan
    October 31, 2006

    Advertisement
    AdvertisementTELSTRA'S chief executive, Sol Trujillo, and his six senior executives are set to pocket yet another bonus - this time a windfall of $11.6 million - when a cornerstone investor buys a stake of more than 15 per cent in the company.

    Fund managers told the Herald that the so-called performance rights for Mr Trujillo and his senior executives would become available as early as May. The rights would be vested without having to meet performance hurdles and without an investor making a full takeover bid. The board would need to override the incentive plan to stop it and has not indicated it will do so.

    The latest revelations come after Mr Trujillo's $8.7 million salary package, which included a $2.6 million bonus, prompted outrage from investors and the Government. He doesn't own a share. The Prime Minister has urged investors to grill the board on Mr Trujillo's salary at Telstra's annual meeting on November 14.

    When the Government sells its stake in Telstra next month the Future Fund will own up to a third of the company. But the chairman, David Murray, has made it clear the fund will sell its shares. A cornerstone investor can buy Telstra shares from May.

    The details come as several predators circle Telstra. Macquarie Bank has looked at the company, and the US corporate raider Kohlberg Kravis Roberts has been touted. US private equity group Blackstone has taken a strategic stake in Deutsche Telekom, and in Ireland, Babc ock & Brown, has bought the telecommunications company Eircom.

    Mr Trujillo is sitting on fresh gains of $3.27 million, the chief financial officer, John Stanhope, $1.46 million, the Sensis boss Bruce Akhurst $1.93 million, the consumer, marketing and channels boss, David Moffat $2.05 million, the enterprise head David Thodey $1.77 million, the business boss, Deena Shiff, $841,000 and the wholesale head, Kate McKenzie, $358,000, should a cornerstone investor take a stake - and this could be the tip of the iceberg as rights are available to 220 executives.

    Performance rights allow an executive to have a share in their company, if they meet hurdles, or, as in this case, there is a change in control in the company. The annual report says: "Performance rights are the right to acquire a share at minimal cost to the employee ($1 exercise price per parcel of shares exercised on a single day) when specified performance measures are achieved."

    Telstra's Andrew Maiden, confirmed that the rights may vest if 15 per cent was bought by a cornerstone investor.



 
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