THE pay deal for Telstra's boss, Sol Trujillo - including perks such as travel and home-security services - is set to grab shareholder attention next week.
Mr Trujillo's salary has caused an uproar among shareholders at Telstra's last two annual meetings and has again raised the hackles of advisers to some of its largest shareholders because of "shortcomings" in the awarding of his long-term bonuses.
Telstra made changes to the bonus scheme for 250 executives - but not for Mr Trujillo - this year, after a shareholder backlash last November.
The concessions, including disclosure of long-term performance triggers, have been enough to persuade RiskMetrics, the corporate adviser, to advise its clients to vote in favour of Telstra's pay deal at its annual meeting in Melbourne on November 21.
But RiskMetrics has noted some shareholders might want to vote against the executive salaries because of the "shortcomings" of Mr Trujillo's long-term pay and the fact that Telstra does not seek approval for equity grants to the chief executive.
Although the American's fixed pay increased only marginally this year, RiskMetrics said the value of his non-monetary benefits rose substantially.
Telstra paid $324,000 for benefits including home-security services, use of products and services, and personal travel.
Mr Trujillo was paid $13.39 million - a 14 per cent rise - making him one of Australia's highest-paid executives.
RiskMetrics' main concern about Telstra's remuneration was Mr Trujillo's long-term incentive scheme, which differs from the company's other executives. His hurdles are assessed over shorter vesting periods and do not include a pre-tax earnings hurdle.
A Telstra spokesman told RiskMetrics that Mr Trujillo's long-term pay was assessed over shorter periods than for other executives - three years rather than four - because it reflected negotiations between him and the company. Telstra initially sought a five-year commitment but Mr Trujillo had been unwilling to make it.
