Sol Trujillo's 32pc cut in total remuneration nets $9m
By Staff Reporters
The Australian (WSJ)
Thursday, August 13, 2009
Sol Trujillo took a 32 per cent cut in total remuneration in his
final year as Telstra's chief executive, receiving $9.06
The payout included salary, bonuses and termination payments,
according to the annual report released today with its full-year
Telstra posted a better-than-expected 10.3 per cent rise in
full-year profit to $4.07 billion but the telecommunications
giant warned of “significant challenges” ahead.
Mr Trujillo, who clashed with the federal government and
competition regulators during his four years at the helm of
Telstra, departed the company on May 15.
His termination payout totalled $3.76m, comprising $3m for 12
months of fixed remuneration and $764,547 in accrued annual
leave. He was paid a salary of $2.61m and a short-term
cash incentive of $2.62m.
His total remuneration was 32 per cent below the $13.39m he
received in fiscal 2008.
The annual report showed Mr Trujillo held 1.59m Telstra shares
at June 30, and had a nominal shareholding -- shares held
indirectly or beneficially -- of 1.34m.
Mr Trujillo was replaced by David Thodey, whose employment
contract, released in June, revealed he would receive a fixed
salary of $2m a year. That is $1m, or one-third, less than
The annual report said 5.17m in options allocated to Mr Trujillo
last financial year had lapsed because a certain target was not
“In fiscal 2009, the gateway total shareholder return share
price of $4.74 as at 30 June 2009 was not achieved,” it said.
“Accordingly, all options granted to the former CEO in fiscal
2009 have lapsed.”
The report also showed that of the 20.69m options allocated to
Mr Trujillo between fiscal 2007 and 2009, just 6.72m, or 32.5
per cent, were vested.