The new CEO of Telstra will be getting a lower base pay than the man he is replacing, David Thodey.
Andy Penn’s base pay will be $2.325 million which is $320,000 less than Thodey’s $2.65 million.
However, like most Australian CEO pay packages, the real opportunity is in the short and long term incentives.
Penn, according to documents lodged with the ASX, can earn three times his base pay depending on whether he hits or exceeds the goals set for short term incentives.
On top of that there will be long term incentives tied to the performance of the company’s shares. No details of those have been released.
The outgoing CEO David Thodey, according to the Telstra annual report, got $12.835 million in total in 2014.
More than $7 million of that was payment of a long term incentive.
Penn’s base is larger than the Thodey’s 2009 starting pay of $1.196 million.
That’s largely a result of Thodey’s work at Telstra growing the business.
Last week Telstra posted a $2.1 billion net profit, a rise of 21.7% for the first half of the financial year, and around $100 million ahead of analyst expectations.