All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Telstra CEO Vicki Brady receives $700,000 pay rise to $6.8m despite network outage

Created at 13 Aug · 1:46 AM1 source↑ Market-relevant
IN SHORT

Telstra CEO Vicki Brady's total compensation rose to $6.8 million for the year ending June, a $700,000 increase from the previous year. The board docked 20% of her bonus due to a nationwide network outage in July.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

$6.8mVicki Brady's total compensation
$700,000Vicki Brady's pay rise
$6.1mVicki Brady's compensation previous year
$607,000Amount docked from Brady's bonus
20%Percentage of bonus docked for CEO and former executive
10%Percentage of bonus docked for other senior executives
$1.3mCombined pay cut for senior executives
$20.7mCombined pay for senior executives
$2.4bnTelstra's profit for the year
$2.3bnTelstra's profit prior year
21 centsDividend per share paid to shareholders
1,219Number of jobs cut
29,334Total employee numbers
$300mIncrease in mobile phone income
$11.3bnTotal income from mobile phones
7.2%Price increase on prepaid handheld plans
3.4%Price increase on postpaid handheld plans
$4Monthly increase for most postpaid plans
$5Monthly increase for prepaid plans
1mAdditional mobile plans sold
26mTotal mobile services in operation
$1.4bnMarket value reduction
$54.3bnTelstra's market value

Who's Involved

Vicki Brady
Telstra CEO who received a pay rise despite a network outage
Telstra
Australian telecommunications company reporting financial results
Telstra's board
Decided to cut CEO's bonus in response to network outage

↳ Why This Matters

The compensation awarded to Telstra's CEO, despite a significant network outage and subsequent criticism, highlights the company's approach to executive pay and accountability. The incident also raises questions about the reliability of critical infrastructure and customer compensation processes.

Key facts

  • Telstra CEO Vicki Brady's total compensation for the year ending June was $6.8 million.
  • This is a $700,000 increase from the prior year's $6.1 million.
  • The board reduced Brady's bonus by $607,000 due to a July nationwide network outage.
  • The outage impacted nearly half of Telstra's calls and data sessions.
  • Telstra's profits increased to $2.4 billion from $2.3 billion year-over-year.
  • Employee numbers decreased by 1,219 to 29,334.

Telstra CEO Vicki Brady received a total compensation of $6.8 million for the year ending June, marking a $700,000 increase from the previous year. This comes despite the company's decision to dock 20% of her bonus, equivalent to $607,000, following a nationwide network outage in July that affected nearly half of its calls and data sessions.

Brady acknowledged the outage, stating Telstra had "let our customers down" and taken full accountability. The company is still assessing customer compensation claims, with nearly $1 million already paid out to eligible customers. Regulatory outcomes and financial implications from the outage remain uncertain.

In addition to the CEO's bonus reduction, other senior executives also saw pay cuts, totaling $1.3 million collectively. Telstra reported a profit of $2.4 billion for the year, up from $2.3 billion previously, and paid a dividend of 21 cents per share. The company also reduced its workforce by 1,219 employees, bringing the total to 29,334.

Despite price increases on mobile plans, Telstra sold an additional 1 million mobile plans, bringing its total services in operation to 26 million. However, the company's share price fell in early trading, reducing its market value by $1.4 billion to $54.3 billion.

Frequently asked questions

Vicki Brady's total compensation for the year ending June was $6.8 million.

Her bonus was reduced by 20% in response to a nationwide network outage in July.

Telstra's profit rose to $2.4 billion from $2.3 billion the prior year.

Telstra cut 1,219 jobs, bringing its total employee number to 29,334.

What Happens Next

01Telstra is completing its investigation into the outage with an external expert.
02The company will be transparent about investigation findings and resulting actions.
03Telstra continues to assess customer compensation claims.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Telstra reported financial results for the year ending June.
The board decided to cut CEO Vicki Brady's bonus by $607,000.
Brady's total compensation for the year reached $6.8 million.
This represents a $700,000 increase from the previous year's $6.1 million.
The bonus reduction was in response to a nationwide network outage in July.
The outage affected nearly half of calls and data sessions on Telstra's network.
Brady acknowledged the company "let our customers down" and took accountability.
Telstra docked 20% of the bonus for its former global networks group executive.

Sources

T1
Telstra CEO gets $700,000 pay rise to $6.8m despite Australia-wide outageThe Guardian

Related Stories

Treasury Wine profit drops 42% on weak Americas business
12 Aug · 11:19 PM
Tata Sons Chairman N. Chandrasekaran to step down in February
12 Aug · 5:47 AM
Home Depot CEO Ted Decker to take temporary medical leave
12 Aug · 1:22 PM
American Airlines Restructures Leadership Amid Profit Gap Pressure
12 Aug · 8:42 PM
John Lewis MD Peter Ruis Departs Amid Sales Challenges
12 Aug · 4:11 AM