Trujillo's $13.4m as Telstra disappoints
February 2, 2010
Dear Mayne Reporters,
it's a huge day for business news but seeing as the wires are yet to report it after more than two hours, we may as well be first with the news that Telstra CEO Sol Trujillo and his deputy Greg Winn together pocketed $24.6 million in 2007-08.
Sol's pay was up from $11.8 million to $13.4 million whist the media-shy Winn soared from $5.7 million to $11.2 million. For all the details go to page 45 of the remuneration report which is on page 269 of this 289 page deluge that Telstra unveiled with its results this morning.
It now increasingly looks like Sol could yet reach gross payments and share profits of $100 million from his 5 year transformation story, although the market wasn't overly impressed with the 13.5% increase in net profit to $3.7 billion this morning.
Telstra shares slipped more than 3% as the market frets that it will be impossible to achieve the stretch goal of $6-$7 billion in fresh cash flow by 2009-10 when it only rose by $1 billion this year to $3.9 billion.
That said, the overall numbers in the presentation looked pretty impressive, as Stephen Bartholomeusz explained on Business Spectator.
ComBank's record $4.7 billion profit also looked good but the outlook was cautious so its shares also fell more than $2% in a market that was down by 1%, largely driven by these two slightly disappointing profit results.
ComBank's figures are extraordinarily robust in the context of the global credit crunch as it dominates the Australian home loan and deposit market. This record profit will lead to an almighty political bunfight if it doesn't pass on next month's full Reserve Bank rate cut.
The other big news today came from CSL, our only international success story in the pharmaceutical space, which is more than doubling its global blood products bet with the $3.5 billion acquisition of US firm Talecris. Check out the full announcment here.
CSL will now be the biggest player in the $US15 billion global blood products market, something which it built from its base as the monopoly blood supplier for the Federal Government.
The stock is suspended whilst a $1.5 billion institutional placement is bedded down, but this is a huge bet by long-serving CEO Brian McNamee, whose brother Paul has just been sacked as Melbourne Football Club CEO for going to Wimbledon and chasing Brisbane Lions full forward Jonathan Brown.
Brian McNamee has arguably the best record of any professional Australian CEO when it comes to international expansion, although the likes of Allan Moss at Macquarie Group and Frank O'Halloran at QBE Insurance also performed extremely well.
Telstra and ComBank are classic examples of the Australian corporate story - big inwardly focused incumbents gouging customers through sheer market power and reporting huge profits.
We need far more examples like CSL, so let's hope McNamee doesn't come a cropper with one bold expansion too many.
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.
it's a huge day for business news but seeing as the wires are yet to report it after more than two hours, we may as well be first with the news that Telstra CEO Sol Trujillo and his deputy Greg Winn together pocketed $24.6 million in 2007-08.
Sol's pay was up from $11.8 million to $13.4 million whist the media-shy Winn soared from $5.7 million to $11.2 million. For all the details go to page 45 of the remuneration report which is on page 269 of this 289 page deluge that Telstra unveiled with its results this morning.
It now increasingly looks like Sol could yet reach gross payments and share profits of $100 million from his 5 year transformation story, although the market wasn't overly impressed with the 13.5% increase in net profit to $3.7 billion this morning.
Telstra shares slipped more than 3% as the market frets that it will be impossible to achieve the stretch goal of $6-$7 billion in fresh cash flow by 2009-10 when it only rose by $1 billion this year to $3.9 billion.
That said, the overall numbers in the presentation looked pretty impressive, as Stephen Bartholomeusz explained on Business Spectator.
ComBank's record $4.7 billion profit also looked good but the outlook was cautious so its shares also fell more than $2% in a market that was down by 1%, largely driven by these two slightly disappointing profit results.
ComBank's figures are extraordinarily robust in the context of the global credit crunch as it dominates the Australian home loan and deposit market. This record profit will lead to an almighty political bunfight if it doesn't pass on next month's full Reserve Bank rate cut.
The other big news today came from CSL, our only international success story in the pharmaceutical space, which is more than doubling its global blood products bet with the $3.5 billion acquisition of US firm Talecris. Check out the full announcment here.
CSL will now be the biggest player in the $US15 billion global blood products market, something which it built from its base as the monopoly blood supplier for the Federal Government.
The stock is suspended whilst a $1.5 billion institutional placement is bedded down, but this is a huge bet by long-serving CEO Brian McNamee, whose brother Paul has just been sacked as Melbourne Football Club CEO for going to Wimbledon and chasing Brisbane Lions full forward Jonathan Brown.
Brian McNamee has arguably the best record of any professional Australian CEO when it comes to international expansion, although the likes of Allan Moss at Macquarie Group and Frank O'Halloran at QBE Insurance also performed extremely well.
Telstra and ComBank are classic examples of the Australian corporate story - big inwardly focused incumbents gouging customers through sheer market power and reporting huge profits.
We need far more examples like CSL, so let's hope McNamee doesn't come a cropper with one bold expansion too many.
That's all for now.
Do ya best, Stephen Mayne
* The Mayne Report is a multi-media governance website published by Stephen Mayne with occasional email editions. To unsubscribe from the emails click here.