Executive Compensation Plan In Telstra

Decent Essays
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,
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Telstra has net promoter score (NPS) is measured that cost of time when customer calls Telstra, the objective for Telstra is going to training and improve skill for staffs and improve that NPS rating to ensure that the customer can extremely fix the problem with less time and good experience. Therefore go through these training staffs are able to enhance their skill to higher level, and have more experience and opportunity for promotion to get good benefit.
Telstra has spent time to ensure that each department are good career opportunities right across the company, In the 2014, Telstra has pay more in wage and company shares for senior manager Mr Ballantyne the Chief Customer Officer was paid $7.5 million in salaries and shares, during financial year 2014 while Ms McKenzie the Group Managing Director earned around $4 million that year. However the way Telstra incentive senior management is not only high pay and company shares also provide opportunity for managers to run large business

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