Telstra under scrutiny for director appointment and Voice advocacy during AGM
In its recent annual meeting, Telstra found itself under the spotlight as shareholders raised questions concerning the appointment of Maxine Brenner as a director and the company's support for the Voice to Parliament referendum.
Brenner, who has served on boards in various sectors, was appointed by Telstra in mid-February.
Institutional Shareholder Services, a proxy advisory firm, had opposed her election, citing her tenure at Qantas and Woolworths, where issues such as illegal firings and deceptive conduct had arisen.
Despite some dissenting proxy votes, Brenner's appointment ultimately gained shareholder approval.
However, a question from an online shareholder about her suitability was swiftly dismissed by Telstra's chair, John Mullen, who argued that criticism was unwarranted.
Mullen spoke in favor of Brenner, describing her as "smart, engaged, and very experienced," and emphasised the benefit of having someone of her caliber on the Telstra board.
Voice to Parliament referendum support
Another key point of contention at the AGM was Telstra's support for the Yes campaign in the Voice to Parliament referendum. The company had committed $1 million in advertising support to the campaign.
While some shareholders questioned the appropriateness of this stance, Mullen defended the decision, stating that it was made after consultation with the Indigenous community, which Telstra engages with regularly.
Mullen acknowledged the existence of diverse and passionate views within the community but emphasised that support for reconciliation was in the best interests of the company and its shareholders.
Other Telstra AGM topics
Additional topics raised by shareholders included concerns about Telstra's pricing relative to competitors and issues related to customer service.
Mullen defended the company's pricing strategy, noting that they consciously maintained a price premium due to the superior network access they provided.
Telstra CEO Vicki Brady reiterated that improving customer service remained a top priority for the company.
Moreover, there were questions about Telstra's decision not to sell its infrastructure business, Infraco, which some shareholders believed could have been a profitable move.
Mullen countered this argument by asking whether it was wise to sell off valuable assets for short-term gains.
Financial performance and future outlook
Despite the scrutiny and shareholder inquiries, Telstra's financial performance for the full year to June was strong, reporting a profit of $2.1 billion and notable growth in its mobile business.
However, the enterprise arm of the company experienced a decline. Telstra recently made headlines with its $267.5 million acquisition of technology consultancy firm Versent.
This AGM marked the end of John Mullen's tenure as chair of Telstra after 15 years with the company.
In his farewell address, Mullen emphasized that the telecommunications industry faced significant challenges, including the loss of profits from government-owned internet infrastructure and evolving competitive and regulatory pressures.
He stressed the need for setting policies and regulatory frameworks that ensure the industry's long-term financial sustainability in an era of exploding data demand.
As industries thrive on ubiquitous connectivity, companies like Telstra are tasked with finding ways to secure their share of the profits. Mullen recognised that the future was uncertain but underscored the ongoing demand for data carriage.
Telstra's AGM saw the company facing shareholder queries on various fronts, including the appointment of Maxine Brenner as a director and the company's support for the Voice to Parliament referendum.
Despite the challenges, Telstra's financial performance remained strong, and the outgoing chair highlighted the need for forward-thinking policies to ensure the industry's sustainability in an evolving landscape.