howards national disgrace, page-6

the real winners Telstra's top 10 get $25m
Mathew Charles, Fleur Leyden, Michael Harvey and Belinda Tasker
10sep05

TELSTRA'S top 10 executives will take home a staggering $25.2 million this year -- almost double last year's pay.

Senior management have won the multi-million-dollar pay rises despite the telco giant's share price adding just 4c for the year to July 1.

Chairman Donald McGauchie, whose pay tripled, said the increase was justified.

On page 211 of the 408-page annual report, he explained the increase came about because payments that were once deferred were now paid upfront.

He said the new system would put a greater proportion of executive pay at risk.

"The board believes that these changes are in line with contemporary Australian and global market practice," he said.

Telstra chose not to reveal the extraordinary pay increases until almost 5pm yesterday, after the share market closed.

This is typically when companies release bad news.

Opposition communications spokesman Stephen Conroy said the payments were outrageous.

"It breaches all accepted international corporate governance standards," he said.

"Shareholders should vote no at the annual meeting when this is put forward."

Mr McGauchie is confirmed as one of the nation's best-paid chairmen, getting more than $497,000. By comparison, the chairman of the world's biggest resource company, BHP Billiton, took home just $260,000.

Dr Ziggy Switkowsky's retirement package is the big winner.

His final pay packet has gone from $2.7 million to $6.6 million.

Sensis chief Bruce Akhurst will take home $2.5 million compared with $1.3 million last year.

The news caps off a torrid week in which the telco's appalling internal state was revealed.

And its full sale remained on hold, hinging on weekend talks involving key senator Barnaby Joyce and a sudden case of pre-wedding jitters.

The Queensland National yesterday likened his latest doubts on supporting sale legislation to a bride on her wedding day.

"People say 'oh, you're so close now, you've just got to go through with it'," he said.

"No. If you're not comfortable, bolt baby. That's it."

Senator Joyce will talk to senior Queensland Nationals about this week's shock revelations about Telstra's financial health and direction.

Initially swayed by the Government's $3 billion bush package, the senator now says he has no idea how he will vote in the Senate next week.

His indecision produced unusual scenes at a Senate committee hearing yesterday, when he asked Tesltra witnesses which way he should vote.

The committee was given only one day to examine five pieces of sale legislation -- a situation Senator Conroy described as farcical.

But Prime Minister John Howard defended the minimal scrutiny of the proposed laws.

"This is an issue that has been trawled over, debated, inquired into, looked at, analysed, pulled apart by different committees and different groups over the years," the PM said.

Senator Joyce expressed frustration that no senior Telstra bosses, such as chief executive Sol Trujillo, bothered to turn up.

Telstra's shares declined another 2c yesterday to $4.35.