Federal Communications Minister Stephen Conroy has slammed excessive salaries for executives, saying they are not appropriate in today's economic climate.
And he's singled out Telstra chief executive officer (CEO) Sol Trujillo's $13.4 million salary for criticism, saying the Telstra board should listen to the concerns of its stakeholders.
Telstra is holding its annual general meeting in Melbourne.
"The board took the decision to pay Mr Trujillo that, and the shareholders had their say on it at the AGM last year and they voted against the remuneration package,'' Mr Conroy told reporters in Melbourne on Friday.
"The board should take it very seriously when its own shareholders reject the package the CEO is on.
"I think the Telstra board should have a good hard look at themselves and start responding.''
Mr Conroy said every board of every company was accountable to its shareholders.
"What we've seen in the financial services industry is a collapse in the ... industry at a time when some salaries are skyrocketing,'' Mr Conroy said. "This is clearly absolutely wrong.
"And the financial sector in particular has been engaged in practices which have been extremely risky and the boards that have put forward these remuneration packages clearly have not been doing a good enough job.''
Mr Conroy said the results were now being seen around the world due to the "greed of some chief executives and their unwillingness to be accountable, and their unwillingness to actually understand the fundamentals of their own businesses''.
At today's meeting, the chairman of the Telstra board's remuneration committee, Charles Macek, said Mr Trujillo's 2007/08 pay packet came on the back of a strong performance by the company.
Meanwhile, a postal ballot of Telstra workers started on Friday, with unions threatening to go on strike after negotiations over pay increases with the company failed.
Unions have criticised Telstra for paying Mr Trujillo millions of dollars, while refusing to offer pay increases to workers that match increased living costs.
Mr Conroy refused to comment on the ballot, saying it was a matter for Telstra and unions to sort out.
AAP
