Telstra 2010 Annual Report Download - page 85

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Telstra Corporation Limited and controlled entities
Remuneration Report
(1) Includes salary, salary sacrifice benefits (excluding salary sacrifice superannuation which is included under Superannuation) and fringe benefits tax. (2) Short term incentive relates to performance in fiscal 2009 and fiscal 2010 respectively and is based on actual performance for Telstra and the individual. Where a Senior Executive was not a KMP for the
entire fiscal 2010 year, only the portion of the STI relating to the period as KMP for fiscal 2010 is shown.
(3) Includes the benefit of interest-free loans under TESOP97 and TESOP99 (which have not been expensed as they were issued prior to 7 November 2002 and were therefore included in the exemption permitted
under AASB 1 “First-time Adoption of Australian Equivalents to International Financial Reporting Standards”), the value of personal home security services provided by Telstra and the value of the personal
use of products and services related to Telstra employment and the value of personal travel costs.
(4) Includes a Customer Satisfaction bonus for Nerida Caesar, Paul Geason, Kate McKenzie, Deena Shiff and John Stanhope. For Michael Rocca, includes a retention payment and a Customer Satisfaction Bonus. (5) Represents company contributions to superannuation as well as any additional superannuation contribution made through salary sacrifice by executives. (6) There were no restricted incentive shares provided under the fiscal 2010 and fiscal 2009 STI Incentive share plan. In relation to fiscal 2009, the value shown relates to the Short Term Incentive Shares
allocated under the fiscal 2005 STI plan whereby 50 per cent of the STI payment was provided as shares to be distributed over three years at 12 month internals. These shares fully vested in fiscal 2009.
(7) In accordance with AASB 2, the accounting value represents a portion of the fair value of options, performance rights and restricted shares that had not yet fully vested as at the commencement of the
financial year. This value includes an assumption that options, performance rights and restricted shares will vest at the end of their vesting period. The amount included as remuneration is not related to,
nor indicative of the benefit (if any) that may ultimately be realised by each Senior Executive should the options or performance rights become exercisable or the restricted shares become restricted trust shares. The accounting value includes negative amounts for options, performance rights and restricted shares forfeited or lapsed during the year that failed to satisfy non-market (ie non-TSR) performance targets. Refer to table 7.3 for further information.
(8) As required under accounting standards, accounting expense that was previously recognised as remuneration has been reversed in fiscal 2010 and fiscal 2009. For fiscal 2010, this has occurred for the fiscal
2006, fiscal 2007, fiscal 2008 and fiscal 2009 LTI plans that failed to satisfy non-market (ie non-TSR) performance targets, resulting in equity instruments lapsing. For market based hurdles, (ie TSR) an
accounting value is recorded above, however the relevant KMP received no value from those equity instruments that lapsed.
(9) Paul Geason commenced as GMD – Telstra Wholesale on 1 July 2009. (10) Glenice Maclellan, GMD – Telstra Consumer, commenced as a KMP on 9 November 2009. Prior to this date, Glenice Maclellan was not considered a KMP. As a result, the table above only includes remuneration
during her period of service as a KMP.
(11) Kate McKenzie, Chief Marketing Officer, commenced as a KMP on 29 March 2010. Prior to this date, Kate McKenzie was not considered a KMP. As a result, the table above only includes remuneration during
her period of service as a KMP.
(12) Justin Milne, former GMD - Telstra Media, qualifies as a KMP for the period 1 July 2009 to 28 March 2010, up to the appointment of Kate McKenzie as Chief Marketing Officer. As a result, the table above
only includes remuneration during his period of service as a KMP.
(13) David Moffatt, former GMD – Telstra Consumer, qualifies as a KMP for the period 1 July 2009 up to his date of cessation at 30 November 2009. As a result, the table above only includes remuneration during
his period of service as a KMP. Termination benefits for David Moffatt are inclusive of accrued but untaken annual leave and long service leave and other payments related to his termination agreement.
(14) Geoff Booth, GMD – NBN retired from Telstra on 29 June 2010 and is disclosed in this table due to his remuneration for fiscal 2010 placing him in the highest five paid company and group executives.
Termination benefits for Geoff Booth are inclusive of accrued but untaken annual and long service leave.