||Issue No. 318||03 August 2006|
Don't Bank on Costello's Oil Shocker
Interview: A Life And Death Matter
Unions: Fighting Back
Industrial: What Cowra Means
Environment: Scrambling for Energy Security
Politics: Page Turner
Economics: The State of Labour
International: Workers Blood For Oil
History: Liberty in Spain
Review: Go Roys, Make A Noise
The Locker Room
What Was He On About?
Belly On Balance
Revelations of Sol Trujillo's massive go-away deal, in the Rocky Mountain News, have shocked shareholders of US telco Qwest.
According to the paper, Trujillo stepped down as CEO of US West after its June 2000 merger with Qwest Communications, taking with him a $US 72 million package.
Trujillo's golden parachute included:
- a $36.9 million merger payment,
- a $10 million reward for signing the agreement,
- a $13.7 million pension payment, 2 million stock options,
- a $5.5 million corporate jet allowance for three years,
- $2 million worth for office space and administrative support, plus nearly $1 million in perks - including memberships at exclusive country clubs and limousine services.
Details of the package were discovered by a Denver attorney investigating the company on behalf of aggrieved shareholders.
CPSU national secretary Stephen Jones says the payout is "mind blowing" and "way out of step with community standards"
"I think most Australians would see this kind of payout as quite offensive. That money had to come from somewhere.
"Even in the heady world of executive payouts, Sol's golden handshake is shocker."
It is understood Trujillo is paid around $3 million year at Telstra - about 60 times the average Telstra worker's salary. If he walks, willingly or unwillingly, he pockets at least another $3 million with the potential for vastly more in unknown share options.
In a statement the company acknowledged Trujilloi was "a wealthy man not in need of a full-time job... the fact that he chose to accept this 24/7 job on the other side of the world away from his family demonstrates his commitment to transforming Telstra."
His plans for transforming Telstra include the shedding of at least another 12,000 jobs over the next five years.
In latest trading Telstra shares slipped 4c to $3.89.
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