TELUS CEO Taking 2010 Salary in Shares

Wednesday, December 16, 2009 3:20

In something of a bold move, telus (NYSE: TU) CEO Daren Entwistle announced during their 2010 financial projections that he would be subbing out his entire cash salary for shares in the company. The move isn’t entirely unheard of in the telecom industry – Motorola (NYSE: MOT)’s Sanjay Jha and Steve Jobs are prominent examples of similar moves – but it does show that he’s feeling good about his chances against Rogers (NYSE: RCI), now armed with an HSPA network, and young up-and-comer wind Mobile. On the flip side, it might be a show of good faith to his underlings, some of whom are out of a job for the holidays. Entwistle made .225 million in 2008, which, though not crazy for a CEO, could go towards keeping a couple of other employees instead.

The 2010 forecast itself called for .5 – .7 billion in earnings before taxes, coming from .8 – .1 billion in revenue. That’s up 1% – 6% and 2% – 5%, respectively, from last year. There’s a lot of HSPA infrastructure set-up costs they’ll need to be off setting next year, but if telus’ performance throughout 2010 is anywhere near Entwistle’s expectations, that should be a problem. For a closer look at the projections, you can find them on telus’ investors site, or get a broader view from our Financial page.

[via Financial Post]

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