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Key points
- Telstra’s performance was strong overall, with a profit of $2.1 billion and growth in its mobile business.
- Shareholders asked questions about the company’s support for Voice, its appointment of directors, and the decision not to sell off its infrastructure business.
- Telstra chair John Mullen was dismissive of criticism and said government policy needed to ensure the viability of telcos into the future.
Telstra has faced questions at its annual meeting about its appointment of Maxine Brenner as director, following corporate governance issues at Qantas where she is also a director, as well as questions about its recent support for the Yes campaign in the Voice to parliament referendum.
Brenner, a former lawyer and investment banker, was appointed by the telco in mid-February.
Board member Maxine Brenner (second from right).Credit: Arsineh Houspian
One proxy advisory firm, Institutional Shareholder Services, had opposed her election, citing failures at Qantas and Woolworths during her tenure as director. These include illegal firings and deceptive conduct at the former, and allegations of underpayments at the latter.
Brenner has also held seats at boards in the mining, finance and education industries. She is stepping down from her position at Qantas next year.
Proxy votes lodged showed a small protest vote – 17 per cent – against Brenner’s appointment, but were overall in favour.
A question taken from an online shareholder about her suitability was immediately shut down by chair John Mullen, who said criticism was coming in from people who didn’t appreciate what directors did.
John Mullen is stepping down as Telstra chair after 15 years with the company.Credit: Dominic Lorrimer
“Questions relating to Maxine’s tenure at Qantas are inappropriate and will not be answered. This is the Telstra AGM, not Qantas,” he said.
“Maxine is smart, engaged and very experienced … shareholders are very lucky to have someone of her calibre representing them on the Telstra board.”
One question was taken over the internet criticising Telstra for taking a stance in the Voice to parliament referendum, which prompted a smattering of applause from the audience in attendance.
Telstra had pledged $1 million in advertising support to the Yes campaign. A later question expressed support for Telstra’s decision.
In his opening address, Mullen admitted the company had received many questions about its support from customers at the time, but that its decision was made after consultation with the Indigenous community, with which he said the company engages every single day.
“We recognise that there are different and passionate views in the community, both for and against … even within Telstra,” he said.
“But where we were all in agreement is that support was in the best interests of the company, and therefore the best interests of our shareholders. We strongly believe that reconciliation is a positive step forward for our country, and for the economy.”
One shareholder accused Telstra chief executive Vicki Brady of using Telstra resources to campaign in favour of changing the date of Australia Day, which Mullen dismissed.
Telstra voted in two new directors at its annual general meeting.Credit: Oscar Colman
Brady clarified that a measure allowing Telstra employees to choose which day they had off for the holiday had been put to a vote as part of bargaining agreement negotiations, and was overwhelmingly supported.
Other themes in the questions from shareholders included claims that Telstra’s prices were too high relative to competitors (“we very consciously maintain that price premium,” Mullen said, because Telstra gives access to the best network), and that customer service was lacking (Brady reiterated that a radical overhaul in that area remained her top priority).
There were also a number of questions about Telstra’s decision not to sell off infrastructure business Infraco, which shareholders thought would pay off handsomely.
In response, Mullen said: “Do you sell all of the family silverware for a quick hit? Shareholders might think it’s wonderful, but then tomorrow you have to live with that decision.”
Telstra’s performance for the full year to June was strong overall, with a profit of $2.1 billion and growth in its mobile business, though with a notable fall in its enterprise arm. Last week, the company announced a $267.5 million acquisition of technology consultancy Versent.
This was Mullen’s final meeting as chair, after 15 years with the company. In parting, he highlighted some issues he believed would define the future of the company and industry.
Telstra had lost billions in profit from internet infrastructure becoming government-owned, and billions from competitive and regulatory pressures that changed how it charges for phone calls, messages, data and international roaming, Mullen said.
As entire industries boom off the back of ubiquitous connectivity, he said, the companies enabling that connectivity need to work out how to get an appropriate cut.
“Telstra and the industry pay for the networks and the capacity that carry all this explosion of traffic, but when you think about the volumes of data carried, get paid less and less for it. We need to set policy and regulatory frameworks that allow the industry to remain financially sustainable,” he said.
“The future is hard to predict. Besides that, there will be huge demand for the carriage of data.”
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