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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 million.

The payout included salary, bonuses and termination payments, according to the annual report released today with its full-year results.

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 Mr Trujillo.

The annual report said 5.17m in options allocated to Mr Trujillo last financial year had lapsed because a certain target was not met.

“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.,28124,25923291-5018020,00.html