[ad] The service leader for Cloud is now in Australia. Secure, reliable cloud and managed hosting all backed by 24x7x365 Fanatical Support. Create your free account now.
Buy an Seagate Business Storage NAS for your chance to win a holiday
[ad] Purchase a selected Seagate Business Storage NAS to receive a $20 cash-back AND go into the draw to win a $1,000 Flight Centre voucher so you can holiday in the destination of your choice. T&Cs apply.
Great articles on other sites
- NBN Co strategic review to be released tomorrow
- Xbox One smashes sales records
- Tech leaders call for speed, ubiquity in NBN rollout
- AIIA urges Hockey to tackle taxes
- IBM accuses Qld govt of trying to ‘rewrite history’
- Newlease undergoes reverse takeover to score ASX listing
- Australia Post loses battle | The Australian
- Start-ups leap at Telstra's accelerator
- Labor won't hand over NBN advice to Turnbull
- Adelaide Uni on hiring blitz for tech transformation
How mobile and social media affect your Customer Experience strategy
[ad] How will the adoption of mobile devices and social media affect your Customer Experience strategy? Are you reaching your organisation's customers through these touch points? Click here to download a whitepaper by Fifth Quadrant examining consumer and business attitudes to these new contact channels.
50 things top IT pros need to know
[ad] This 18 page TechRepublic whitepaper explores 10 things you should know to become an epic IT manager, 40 other essential tips to advance your IT career and practical guidance for starting an IT consulting business. Click here to access the whitepaper.
Featured, News - Written by Renai LeMay on Monday, November 22, 2010 8:27 - 0 Comments
Future Fund snubs Telstra
Telstra’s shareholders voted overwhelmingly in favour of three resolutions at its annual general meeting on Friday. The only problem? The company’s largest shareholder, the Federal Government’s Future Fund, issued a protest vote against all three.
On paper, the resolutions appeared relatively minor — relating to the appointment of a new director to Telstra’s board, the adoption of the remuneration report which governs the pay of the telco’s leadership, and the adoption of a modified constitution for the company. All three resolutions were passed by shareholder vote of between 75 and 80 percent.
However, in a statement issued Friday, the Future Fund — which owns about 10 percent of Telstra, worth several billion dollars — revealed it had voted against the trio of motions, stating that its decision was made based on its voting policy and principles designed to protect and enhance shareholder value.
First, the Future Fund said, it voted against the board appointment because it believed Telstra would benefit from increasing the level of telecommunications experience among its non-executive directors, “particularly given the very significant changes in the company’s operations that will have a lasting impact on shareholder value”.
Just two of Telstra’s non-executive directors have direct experience in the telecommunications sector — Geoffrey Cousins, who was the first chief executive of Optus Vision, the joint venture between Optus and Continental Cablevision which built Optus’ HFC cable network, and lawyer and US telecommunications veteran John Zeglis, who let AT&T’s Wireless Group in the US for five years from 1999 to 2004.
Furthermore, the Future Fund also objected to the changes to Telstra’s constitution.
“Resolutions to reduced the maximum number of director positions to 11 while making a further appointment have the effect of filling the board and preventing the appointment of non-executive directors with appropriate telecommunications experience,” the group wrote.
And even Telstra’s remuneration report came under pressure, with the Future Fund indicating that it had concerns about Telstra’s internal customer service overhaul, despite acknowledging the need to provide competitive remuneration to executives.
“There is inadequate detail around how the returns to be generated from the Project New reinvestment program will be measured,” the Future Fund wrote. “The Board of Guardians is also concerns at the use of a free cash flow measure as a hurdle for the Long Term Incentive Plan while the company is negotiating payments from NBN Co and the limited clarity on how this approach will align remuneration to the creation of shareholder value.”
The Future Fund is gradually and publicly reducing its share of Telstra — for example, selling down a full one percent in recent months, according to a recent Telstra statement to the Australian Stock Exchange. It is doing so with a view to rebalancing its portfolio
However, in its statement the organisation — which manages various funds worth $69.31 billion for the Federal Government, including relating to public sector superannuation — pointed out that it remained Telstra’s largest shareholder (courtesy of the transferral of shares into its coffers as part of the telco’s privatisation) and intended to “engage constructively with the company” and to exercise its ownership rights to enhance shareholder value.
Despite the fact that most shareholders voted in favour of the motions, the Future Fund wasn’t the only shareholder to pinion the telco on Friday at the AGM.
A number of small shareholders angry about the company’s dwindling share price expressed their concerns directly to the company’s management, with one accusing the beleaguered telco of having suffered “ten years of failure” in terms of its management and another branding the situation “a shocker”.
Telstra’s share price is currently languishing around the $2.60 mark, close to its 52-week low of $2.55 and close to its all-time low since it was listed in 1997. The company’s share price has steadily declined since the turn of the decade in 2000, when it was above $9.
Image credit: Telstra
Latest Delimiter 2.0 articles (subscriber content)
|Politicians from Australia’s major parties need to stop issuing ludicrous blanket pardons for the intelligence community’s ongoing misdemeanours and start applying a basic modicum of transparency and accountability to this important national security function.|
|The independent pro-fibre National Broadband Network movement is doing a far better job of promoting Labor’s Fibre to the Premises-based NBN policy than Labor itself. When is Labor going to wake from its slumber and start supporting this scrappy but energetic grassroots network of activists?|
|Ziggy Switkowski's first substantial public appearance since being appointed NBN Co chief executive has starkly demonstrated just how different he is from his predecessor, Mike Quigley, and just how strictly he will adhere to the guidelines which his patron, Communications Minister Malcolm Turnbull, has set for him.|
|Australian technology companies have been virtually absent from the the nation’s public stockmarket over the past decade as the stigma of the dot com bust took its toll on investor confidence. But a clutch of new listings planned for the closing months of 2013 shows renewed interest in the sector and that local entrepreneurs are smelling money in the air once again.|
|NBN Co’s Strategic Review process gives the company an unmissable opportunity to re-evaluate the early decision to deploy its FTTP network primarily through Telstra’s underground ducts. The company and its new Coalition masters must now seriously consider deploying more fibre aerially on power poles in an effort to speed up its rollout substantially.|
|That moment which many Australian technologists fervently hoped for but never expected to see has come to pass: Simon Hackett has been appointed to the board of the National Broadband Network Company. But what questions should the Internode founder be asking NBN Co’s executive management team? Here’s five ideas to start with.|
|The rapid replacement of respected NBN Co chief operating officer Ralph Steffens with a Telstra executive who appears less experienced with fibre rollouts but better politically connected represents a key signal that NBN Co’s senior executive hiring process has now become completely politicised and is no longer independent from the Federal Government.|
Enterprise IT, Featured, News - Dec 11, 2013 13:07 - 1 Comment
“Diabolical mess”, “Scandal of epic proportions”: NT ICT Minister damns Fujitsu to hell in extraordinary rant
More In Enterprise IT
- Qld confirms plans to sell CITEC
- David Boyle appointed NAB CIO
- Qld payroll lawsuit ‘rewriting history’, says IBM
- Harbour City Ferries goes Microsoft across the board
- Payroll disaster: Queensland sues IBM
News, Telecommunications - Dec 11, 2013 12:29 - 34 Comments
More In Telecommunications
- Labor forces NBN Co back to Senate
- Telstra 4G trials hit 300Mbps
- “Captain of the Titanic”: Turnbull mocks Quigley’s NBN tenure
- NBN Co still has 1Gbps on way
- Delimiter appeals Turnbull Blue Book censorship
Blog, Industry, Startups - Dec 10, 2013 10:19 - 0 Comments
More In Industry
- Telstra shares millions with Box
- The Australian IT sector needs a stronger voice
- Xbox One goes off with a bang … but will the PS4 launch eclipse it?
- It’s not just Freelancer: Aussie tech IPOs are back in general
- Freelancer’s IPO: A billion reasons to care
Digital Rights, News - Dec 10, 2013 18:57 - 0 Comments
More In Digital Rights
- Telstra ‘not logging’ customers’ web, email history
- Labor, Coalition reject Intelligence committee reformation
- Screwed: Australian PS4, Xbox One lack basic functionality
- Censored: Appeal for AG’s Blue Book fails
- Senate to force TPP publication