Wake up Australia, you are being robbed!
It isn’t the local criminal breaking in to steal the plasma TV and DVD player either, it’s a crime on a much larger scale. Billions of dollars of taxpayers dollars are vapourising into thin air. Every cent that the Telstra share price drops means one less cent for the taxpayer when the company is eventually sold, and it will be sold as surely as John Howard’s middle name is Winston.
A charming graph if you happen to be short Telstra; but a share price tale that should make the average Australian sick, especially after the bickering that has taken place this week between the new American CEO of Telstra and the Aussie PM John Howard. Share holder value before ego next time please.
People who like catching falling knives or who are much braver than me would be buying now, you see you never really know how low a company goes before they might eventually rise. Some large fund managers were dollar cost averaging Enron all the way down believing what a fine ‘growth stock’ it was. I like Telstra’s future prospects even amid the current pillaging of value that’s going on, I like the yield, I just want to see the company free of political self serving interest and recycled American CEO’s before it gets any of my investment dollars.
Telstra is asking shareholders to approve a hefty pay rise for directors at next month’s annual meeting, despite reservations about the board’s performance.
According to Telstra’s notice of annual meeting – released with its 2005 annual report after the sharemarket closed on Friday – the group is seeking an additional $680,000 for its seven directors. This would take the maximum total directors’ fees to $2 million, up 52 per cent.
The proposal comes at a turbulent time for the telco, whose market value has slumped almost $10 billion since its new chief executive, the American Sol Trujillo, took up the reins on July 1.
Telstra defended the controversial increase, saying that a directors’ fee pool of $2 million “compares favourably with the fee pools of Australian companies of comparable size”. – source: Sydney Morning Herald.
Now this really isn’t about dollar figures. If a board brings billions of dollars of extra value to a company then they should be payed in gold bars, luxury yachts, tanker loads of cash, why not? That’s capitalism at it’s finest. It’s the disconnect between performance and pay that irks me. Telstra share price is going up great guns – new holiday houses for us please, share price is tanking – new holiday houses and a BMW please because thats what those directors in other companies are getting! That’s a communist ideal, not a capitalist one.
I just love the idea that you can get paid based on what others in your industry are getting paid, rather than what value you bring to your job. I only wish that it applied to all areas in life, you see I’m an investor and so is this billionare guy Warren Buffet and my pay is not keeping up with his, that’s really not cool.