Self-imposed wage freeze at Telstra

Telstra's chief executive has imposed a pay freeze on the company's top executives for at least 12 months.

David Thodey told senior staff yesterday that, in light of the tough economic climate, the company would be tightening its belt to find savings.

Most of Telstra's senior staff had been due for a pay rise in the new financial year, but 300 of the company's executive staff will have their salaries frozen for a minimum of one year.

A spokesman for Telstra says there will be a shift towards performance-based remuneration for executive staff in the future.

More than 20,000 Telstra workers will still be eligible for the 2 per cent pay increase the company has put on the table, but those workers on collective agreements or negotiated individual contracts will be exempt from the pay increase.

- RADIO AUSTRALIA