Vancouver Sun Saturday, April 09, 2005
Telus executives reap huge pay raises
Strong growth in earnings, revenue and cash flow justifies increases, company saysBy Bruce Constantineau
Telus president Darren Entwistle and Telus Mobility president George Cope made more than $6.5 million each in total compensation and stock option gains last year as the company rewarded its senior managers for strong earnings and share-value increases in 2004.
A Telus information circular released Friday showed Entwistle's total compensation rose from $4.25 million in 2003 to $6.55 million last year. He exercised stock options for a gain of $1.35 million in 2004 and reinvested those proceeds in Telus shares but did not exercise any options in 2003.
Cope's total compensation rose from $3.58 million in 2003 to $6.74 million last year.
He exercised stock options for gains of $2.02 million in 2003 and $2.24 million last year.
Telus representative Nick Culo said the company's financial performance justified significant increases to Telus executives last year.
The company reported earnings of $565.8 million last year on revenues of $7.58 billion, compared with 2003 earnings of $324.4 million on revenues of $7.15 billion.
Telus shares traded in the $24 range a year ago but have risen sharply since then and closed Friday at $38.12.
"Our share price was up 40 per cent last year and we were the global telecom leader with respect to revenue, earnings and cash-flow growth rates," Culo said.
"Those things say a lot about the management team and Darren's performance and leadership of this organization."
Culo said Entwistle "far exceeded" his personal performance targets in 2004, resulting in significant compensation increases for the year.
Restricted share units (RSUs) made up a major portion of executive compensation at Telus last year, accounting for roughly $3.7 million worth of Entwistle's package and $3 million of Cope's compensation. RSUs are shares purchased by a company on behalf of a senior executive, who does not immediately take possession of the shares.
Telus chief financial officer Robert McFarlane made a total of $4.05 million last year -- including $2.6 million in stock option gains -- compared with total compensation of $1.3 million in 2003, when he did not exercise any stock options.
Telus Business Solutions president Joe Natale had his total compensation package increase to $1.6 million last year from $1.35 million in 2003 while Telus chief marketing officer Wade Oosterman's compensation rose to $1.3 million last year from $925,000 in 2003.
about the management team and Darren's performance and leadership of this organization."
Culo said Entwistle "far exceeded" his personal performance targets in 2004, resulting in significant compensation increases for the year.
Restricted share units (RSUs) made up a major portion of executive compensation at Telus last year, accounting for roughly $3.7 million worth of Entwistle's package and $3 million of Cope's compensation.
RSUs are shares purchased by a company on behalf of a senior executive, who does not immediately take possession of the shares.
Telus chief financial officer Robert McFarlane made a total of $4.05 million last year -- including $2.6 million in stock option gains -- compared with total compensation of $1.3 million in 2003, when he did not exercise any stock options.
Telus Business Solutions president Joe Natale had his total compensation package increase to $1.6 million last year from $1.35 million in 2003 while Telus chief marketing officer Wade Oosterman's compensation rose to $1.3 million last year from $925,000 in 2003.
- - -
BIG PAYDAY
Here is the compensation for key Telus executives for 2004*:
$6.55 million Darren Entwistle, President & CEO
$6.74 million George Cope, CEO Telus Mobility
$4.05 million Robert McFarlane, Chief Financial Officer
$1.6 million Joe Natale, President, Telus Business Solutions
$1.3 million Wade Oosterman, Chief Marketing Officer
*Compensation totals include the value of stock options exercised in 2004.