The new Telstra CEO caused an initial spike in the share price yesterday but then enthusiasm waned in afternoon trade as the stories started to circulate.

His reputation among European investors is pretty weak. Does he still own his own private jet? There was talk he was charging some of the flying expenses back to Orange during his oh-so-brief time there.


The lad also seems to have a knack for gathering quite sizeable payouts from companies he manages as you can see here.

"Another short-term incentive is the payoff for top executives, for whom M&As have become an almost no-lose proposition, and a lucrative one. The 1999 deal linking his company with Qwest brought US West CEO Sol Trujillo $15 million in severance, and $46 million in stock options along with $11 million to cover taxes on them, a guarantee he had set up for himself while negotiating with various corporate suitors. He also received 300,000 shares of restricted stock in Qwest (worth $24 million at the time of the deal). Qwest CEO Joseph Nacchio, for his part, got stock options worth $160 million and a $26 million 'growth share' payment."


He would have collected some nice stock options in Orange after just one year at the helm as you can see here.

Throw in another year or two at Telstra to manage it through the float
and pick up some more nicely priced share options and that would bring
up a nice trifecta of payouts. Finally, check out this link.

"HB: With subsequent events at Qwest, do you feel events have proved you right? He [former Qwest CEO Joe Nacchio] has resigned and [four] financial executives are under indictment now."
"TRUJILLO No, I chose to retire when I did - and this was all public - because of a difference in values and beliefs and principles. Stories in The Wall Street Journal, USA Today. With the new leadership and ownership structure. As you'll recall, this is a fairly unique ownership structure for a large company like that, where you have one individual owning around 20 percent of the company. I decided it was best that I retire, because I had created a huge amount of value for the investors, employees, everybody there. We had a fairly impressive integration plan we put together before I left."

TRUJILLO As an American in Europe, sometimes I use phrases from the U.S. that are so visual. One phrase I use is, "Now we have to walk and chew gum at the same time."

London Telco Analyst