Telstra 2007 Annual Report Download - page 111

108
Telstra Corporation Limited and controlled entities
Remuneration Report
CEO and senior executives contract details
The key terms and conditions for the CEO and senior executive service contracts are summarised and set out
in Figure 18.
A contract typically outlines the components of remuneration paid to the executive but does not prescribe
how remuneration levels are to be modified from year to year.
Generally, contracts can be terminated by either the company or senior executive providing 6 months
notice. Upon notice being given Telstra can require the executive to remain employed by Telstra for the
notice period or terminate employment immediately by providing payment in lieu of notice.
Figure 18: Summary of contract arrangements for CEO and senior executives
(1) Upon notice being given Telstra can require the executive to work t hrough the notice period or terminate employment immediately by providing
payment in lieu of not ice.
(2) Payment is calculat ed on fixed remuneration as at date of termination. There will be no payment if termination is a result of serious misconduct or
redundancy (in which case Telstra’s redundancy policy applies).
(3) Greg Winn was initially employed on a 2 year contract with a completion date of 10 August 2007. The contract has been extended by 12 months t o
8 August 2008.
(4) Contract completion payment of up to $1.8m subject to performance against pre-determined measures t o be paid in August 2007 in accordance with
initial fixed term contract. An additional payment of $500,000 is payable if he remains employed by Telstra until 8 August 2008.
E. NON-EXECUTIVE DIRECTORS
1. Remuneration policy and strategy
In order to maintain their independence and impartiality, non-executive directors are remunerated
with fees which are not linked to company performance. The total fee pool is approved by
shareholders.
Our non-executive directors are remunerated in accordance with our constitution, which provides for the
following:
• an aggregate limit of fees is set and varied only by approval of a resolution of shareholders at the annual
general meeting; and
• the Board determines how those fees are allocated among the directors within the fee pool.
The total non-executive director fees are not to exceed the annual limit of $2,000,000 per annum approved
by shareholders
Name Term of
agreement
Fixed
remuneration at 30
June 2007
Additional
conditions
Notice Period
(1) Term ina t ion
payment (2)
Solomon Trujillo Ongoing $3,000,000 Refer to the STI and LTI
conditions summarised
on pages 96 and 97.
30 days 12 months
Bruce Akhurst Ongoing $1,250,000 nil 6 months 12 months
Kate McKenzie Ongoing $625,000 nil 6 months 12 mont hs
David Moffatt Ongoing $1,265,000 nil 6 mont hs 12 months
Deena Shiff Ongoing $900,000 nil 6 months 12 months
John Stanhope Ongoing $1,100,000 nil 6 months 12 months
David Thodey Ongoing $1,160,000 nil 6 months 12 months
Gregory Winn 11 August 2005 to
8August 2008(3) $2,000,000 Cont ract completion
payments. (4)
Also refer to the STI and
LTI condit ions
summarised on page 98.
3 months 6 months + pro-rata
STI + cont ract
completion payment