Lindsay Tanner (Melbourne, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

My question is to the Prime Minister. Does the Prime Minister recall attacking Telstra on 29 September this year on the remuneration package of Telstra CEO Mr Trujillo? Why didn’t the Prime Minister take this approach last year, when the government’s position was:

The shareholder minister takes the view that it is reasonable in the circumstances and therefore would not be voting against it.

If Telstra’s CEO salary is so excessive, why did you support it then—and is he worth it now?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The Chief Executive of Telstra is appointed by the board of Telstra and the board of Telstra determines his remuneration. The point I made on 29 September and the point the Treasurer made, I would be very happy to make again—and this applies to any highly paid chief executive in this country. If any person is paid a bonus, particularly at a chief executive level, over and above that person’s normal remuneration then it is incumbent upon the board to be satisfied that the performance criteria which are meant to validate the bonus have in fact been achieved. That was the point that was made by the Treasurer and it is a point that I am very happy to repeat. I think the Australian people share the view that large Australian companies have got to pay competitive salary levels, but they also share the view that people who are highly paid in this country have got to earn every dollar they get paid.