Telstra Boss Gets 11% Pay Rise Despite Job Cuts and Major Outage
Telstra CEO defends $6.8 million pay packet as company cuts more than 1,200 jobs
Telstra CEO Vicki Brady has received an 11% pay rise, taking her total remuneration to $6.8 million for the last financial year, despite the telecommunications giant cutting more than 1,200 jobs and facing a major network outage.
The pay increase has drawn attention because the company experienced significant disruption during the year, including a July 8 outage that left millions of Australians unable to connect to Telstra's network. Hundreds of people were also unable to dial Triple Zero during the incident.
CEO pay rises by $600,000
Telstra's annual report shows Brady's remuneration increased by $600,000 to $6.8 million.
However, her bonus was reduced by $607,000 following the network outage. Telstra said the bonus reduction reflected the fact that the outage was caused by something considered to be within the company's control.
Other senior executives also had their bonuses reduced following the incident.
More accountability could follow
The investigation into the outage is still underway, with an external expert reviewing what happened.
Telstra has indicated that executive remuneration could face further adjustments once the investigation is completed.
Brady said the board had already held the senior executive team accountable through adjustments to FY26 remuneration.
She added that the board would consider the investigation's findings when determining FY27 remuneration and whether any further accountability was required.
Job cuts add to the scrutiny
The pay rise comes after Telstra slashed more than 1,200 jobs over the same 12-month period.
The combination of workforce reductions, the significant network outage and the increase in CEO remuneration has therefore put executive pay under greater scrutiny.
While Brady's bonus was reduced because of the outage, the overall increase in remuneration means her total pay still reached $6.8 million.
For investors, the key issue will be whether Telstra can demonstrate improved operational reliability and performance while managing costs and workforce changes.
The outcome of the ongoing outage investigation could also determine whether further changes to executive remuneration are made in FY27.
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