Telstra chief quits

Telstra boss Ziggy Switkowski will step down in 2005, two years short of the end of his contract. He will receive an agreement payment of $2.092 million (propably Australian Dollars), as well as fixed remuneration in lieu of notice if he steps down before July 1, 2005.

It is nice to be a boss, isn't it? We might be unfair here, as the company is said to be one of the most profitable in Australia and still has a market share of about 60%, in fixed line probably. However, the mobile market looks different: Optus clearly has been the major winner in 2004, increasing its market share by 6.8% to 35.5% while Telstra’s share dropped 8.1% to 39.7%. Now these are worrying numbers.

It is also said that "Telstra has survived without truly prospering. It has done so primarily through massive cost-cutting and by using its status as an integrated carrier to provide full-service offerings."

And looking at their financial data over the last couple of years doesn't show a very rosy picture:

Sales revenue grew from AUD19.3 billion in 2000 to AUD20.7 billion in 2004. Net profit grew from AUD3.7 billion to AUD4.1 billion over the same period. Net debt increased from AUD8.9 billion to AUD11.2 billion.

The remuneration is probably justified for some reasons and this is the "Western World". You in Australia decide, if you agree.

Update - Dec 3 2004:

Australia News reports that outgoing Telstra chief executive Ziggy Switkowski was pushed out of the top job at Australia's largest company after a split with some board members

(By Asia Business Consulting)