Benefits Of Telstra Pay The Dividends For Shareholders And The Executive Compensation Plan

823 Words May 29th, 2015 4 Pages
This case study is going evaluate the two objective which are Telstra pay the dividends for shareholders and the executive compensation plan in Telstra also the way to incentive senior management team. The most important evaluation is that how does the Telstra can provide the dividends to shareholders by increase the profit form senior management team also realise the responsibility to shareholders.

On 14 August 2014, the directors resolved to pay a final fully franked dividend of 15.0 cents per ordinary share ($1,866 million), Telstra has paid the dividends in the financial year at 2014 which is 3545 million, 2013, 3480 million, 2012, 3475 million, 2011, 3475 million, and 2010, 3474 million. Dividend payout ratio at FY14 is 86 per cent, and the dividend yield which is 4.9 per cent. Telstra has announced that off-market share buy-back of up to approximately $1 billion of Telstra shares. For the purpose of this plan is available to eligible shareholders and implemented by way of a tender process and at a discount to market price, also Telstra expected to return further cash to shareholders in the future by declaring dividends and maintaining the board’s target balance sheet ratios. Furthermore Telstra’s share price continued to rise in FY14, and with a full year dividend payment of 28.5c cause that delivered a total shareholder return of 15.2 per cent over the financial year. Therefore Telstra’s earnings per share (EPS) were 16.9 cents, although that figure would have been…

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