announcement of new Telstra CEO Sol Trujillo caused an initial spike in
the share price yesterday, but then enthusiasm waned in afternoon trade
as the negative stories started to circulate. And the telco was down
another 3 cents in this morning’s trade.
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 $US15 million in severance,
and $US46 million in stock options along with $US11 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 $US160
million and a $US26 million “growth share” payment.
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He would have collected some nice stock options in Orange after just one year at the helm as you can see here.
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 exchange.
REPORTER: 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.
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% 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.
All up, it doesn’t sound too encouraging.