http://www.smh.com.au/news/business/...329286761.html
Proxies cast on Telstra's controversial Remuneration package for executives
including CEO Sol Trujillo - who earned $11.8 million last financial year -
are heavily opposed to the deals.
In a non binding vote on Telstra's remuneration report to shareholders, 3.63
billion shares, 66 per cent of the total, were cast against, and 1.83
billion or 34 per cent cast in favour.
Telstra chairman Don McGauchie said the board was very disappointed by the
vote, which while non-binding, is a major rebuff for the board by major
shareholders, including the new Future Fund, which owns 16.5 per cent.
The board carefully analyse the figures "and give them full consideration in
future remuneration planning." Telstra's board believed the plan was fair
and reasonable and would not have proposed it if it did not, he said.
The vote is non binding on Mr McGauchie and his fellow directors, and
Telstra's chairman said he believed board's like Telstra's that faced a "non
standard environment' as it pursued a $20 billion renovation of its systems
and networks were in a "no win situation."
AAP Reports: The Future Fund Board of Guardians voted against the
remuneration report put to shareholers at Telstra's annual general meeting
this morning.
The Future Fund holds 2.05 billion Telstra shares, representing 16.5 per
cent of the issued stock.
Chair of the board of guardians, David Murray, said the fund had held
discussions with representatives from the Telstra Board.
He said it had given careful consideration to the resolution.
"Competitive remuneration is important to attracting, motivating and
retaining executives,'' Mr Murray.
"Telstra's remuneration report includes a breadth of elements addressing the
level and mix of remuneration for a range of executives.
"We are obliged to consider the report as a whole and believe that a
critical principle in remuneration is that there is clear alignment between
long term equity based executive reward and returns to shareholders.
"We believe this principle is not sufficiently evident in the Telstra
arrangements,'' said Mr Murray.
The Future Fund Board voted in favour of all other resolutions put at the
meeting.
66% oppose Telstra's Remuneration package for executives including CEO Sol Trujillo 
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