When Chief Executive Sol Truillo leaves Telstra, he will have pocketed more than AUD$33mil and AUD$5.6mil in shares for fours years of work. This is how the company has performed:
........................................2005 ___ 2006 ___ 2007 ___ 2008
Net profit ($bil)...............4.3 _____ 3.2 _____ 3.2 _____ 3.7
Share price (close)..........5.06 ____ 3.68 ____ 4.59 ____ 4.24
Sales revenue ($bil).......22.16 ____ 22.71 ___ 23.67 ___ 24.66
From what I can see, Trujillo has only managed to maintain status quo. Whatever marginal increase in revenue is negated by a reduction in net profit.
From a national perspective, despite running the largest telco company in Australia, he has not made any impact to the Australian telecommunications industry: in the last 4 years, internet prices remain at its high cartel-like level of 2005; internet speed remains lagging behind almost all the developed countries; telephone line rental has crept up marginally; and mobile phone call charges remain at an unabated staggering cost. Trujillo has not shaken up the industry. He has not introduced the price and performance competition the government had hoped for when privatising Telstra. Rather, it seems that Trujillo has tried his best to squeeze as much profit out of the market as he could get, without investing in state-of-the-art infrastructure. This is not the mark of a high-powered superexecutive leader-statesman who is rewarded handsomely for staying on the job, and rewarded yet again when he leaves one year before his 5-year contract is up.