KEY POINTS:
SYDNEY - Australian telco giant Telstra's management faces a long and difficult annual shareholder meeting today, which will include a protest over executive pay and a face-off with the government over the nomination of a new board member.
A demonstration by the Communications Workers Union will greet shareholders outside the meeting, to be held in Melbourne today.
The union will be demonstrating against job losses at Telstra and minimal staff pay rises, while senior executives, including boss Sol Trujillo, have enjoyed multi-million dollar salaries.
But former government adviser Geoffrey Cousins is expected to be voted onto the board with the backing of the federal government, which holds 51.8 per cent of the company, despite early opposition to the appointment.
The Telstra board has questioned the impartiality of Mr Cousins' appointment, given that he ended his job as an adviser to Prime Minister John Howard just before his nomination in September.
The nomination also came ahead of the public sale of part of the government's stake in the company, which will reduce its board influence over time.
Telstra management will also be asked to explain a controversial clause in the company's remuneration report which would allow it to vest A$11.7 million ($13.6 million) in performance share rights if an investor buys 15 per cent of the company.
- AAP
