Entwistle bets his salary on Telus gains
Last Updated: Tuesday, December 15, 2009 | 02:02 PM EST
Financial Post
Darren Entwistle, the chief executive of Telus Corp. is so optimistic that the telecommunications giant will meet or exceed expectations next year, he's betting his salary on it.
"I'm confident in the opportunity that our company has in the coming quarters and years ahead in creating sustainable value," he said. "Accordingly, I've recently informed the Telus board of directors that I'll be taking the entirety of my 2010 annual cash salary compensation net of taxes in Telus shares."
Compensation figures for this year were not immediately available. However, in 2008, Mr. Entwistle earned $1.225-million in salary, according to the company's annual report. Total after-tax compensation, including options, totalled $4.42-million.
Mr. Entwistle informed analysts of the move after giving the Vancouver firm's guidance for the next four quarters. Telus said it expects consolidated revenues of between $9.8-billion and $10.1-billion next year led by accelerated adoption of smart phones and continued growth of wireless data.
Roaming on Telus's new nationwide next-generation network from international customers will also help push growth, company executives said in a conference call.
Tens of thousands of foreign tourists will travel to Vancouver in February for the Winter Olympic Games.
Company officials said that full-year earnings should come in between $2.90 and 3.30 a share, in line with analyst expectations.
Mr. Entwistle's announcement comes as Telus's shares have slipped in recent days alongside other wireless industry incumbents Rogers Communications Inc. and BCE Inc.
New competition from startup entrants like WIND Mobile, DAVE Wireless Inc. and Public Mobile in the coming months will directly impact the financial performances of the established players, analysts believe.
Shares in Telus were up half a percentage point shortly after the announcement, trading at $32.21 on the Toronto Stock Exchange. They had declined more than 7% over the last five trading sessions.
WIND will be the first new player into the market, with services in Calgary and Toronto launching as early as Wednesday.
Last Friday, the federal government approved Globalive Wireless Management Corp., the company behind the WIND wireless brand, to operate. The new carrier had been barred from launch for the previous six weeks after the Canadian Radio-television and Telecommunications Commission said Globalive was not Canadian-controlled, a requirement under telecom laws.
The federal Cabinet disagreed and overturned the ruling.
Telus said it would also provision another $75-million for restructuring efforts, which included the elimination of about 1,000 jobs through next year. The company said it was not advising on any change to its dividend.
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