From the day Mr Trujillo started on July 1, 2005, to the day of his departure last Thursday, Telstra shares have fallen 37.8 per cent compared with a 13 per cent fall by the benchmark S&P/ASX 200 index. Based on total shareholder returns, which takes into account dividend payments, Telstra shares have underperformed the wider market by 18 per cent, according to Bloomberg data.
Since the peak of the stock market in late 2007, the S&P/ASX 200 is off about 44 per cent, while Telstra shares are down just 32 per cent. Still, Telstra shares never moved more than a few cents past the $5.06 mark when Mr Trujillo joined the company and closed yesterday at $3.21.
And this is how someone earns $30 million in four years? Running a sub-standard company that doesn't even benefit its shareholders, let alone its customers? Fortunately for Trujillo's successor, most Australians don't seem to know how substandard their telecommunication services are compared to the rest of the industrialised world, and therefore expectations are pretty low that it's ever going to get better here.
After digging around a bit, I discovered that before he came to Australia in 2005, Trujillo was the CEO of US West until a hostile takeover by Qwest in 2000. Then he became the CEO of Orange, the French telecom, which has an infamous reputation as an ISP provider in the UK. He's still on the Board of Directors of Orange today. Gee, I sure hope that someone asks to see Trujillo's resume before he's allowed to "fix" his next company.