22 Nov 2010
In a rebuff to Telstra’s board and senior management, the Future Fund, the operator’s biggest shareholder, voted against all resolutions at the annual shareholder meeting on Friday.
The state-owned fund voted against re-electing director Nora Scheinkestel, and also declined to approve the remuneration report and changes in the company’s constitution.
The opposition of the Future Fund, which owns 9.9% of Telstra shares, was not enough to prevent the measures from being passed.
But the vote shows its lacks confidence in the company’s direction under CEO David Thodey and his efforts to strike a deal on the NBN.
In rejecting Scheinkestel, the Future Fund said in a statement that the operator “would benefit from increasing the level of telecommunications experience among its non-executive directors.” especially given the massive impact of the NBN.
The reelection of her and the reduction of the number of directors by two would “have the effect of filling the board and preventing the appointment of non-executive directors with appropriate telecommunications experience,” it added.