Compensation InsightHow Telstra Pays
A comprehensive analysis of Telstra Group's inverted band system (Band 4 to Band A), compensation across Australia, India and Asia-Pacific, the EVP equity structure, Enterprise Agreement wages, and executive pay.
At a Glance
Career Level Hierarchy
Telstra uses an inverted band numbering system — Band 4 is the most junior and Band 1 is the most senior staff band. Bands A/B/C are executive levels. ~70% of staff are under the Enterprise Agreement (EA) covering Bands 2–4.
Executive Leadership (above Band 1)
Enterprise Agreement Coverage (2024–2027)
Telstra's Enterprise Agreement covers all Band 2–4 employees of Telstra Limited and Telstra Purple (excluding lawyers and retail store staff). EA staff are split into two categories: Workstream Employees (guaranteed percentage increases: 4%, 3.5%, 3%) and Job Family Employees (performance-based pool with guaranteed minimums of 3%, 2.5%, 2% for rating ≥3).
Inverted Numbering — Why?
Telstra's band system is a legacy of the old Telecom Australia / PMG days. Band 4 = most junior, Band 1 = most senior staff. This is the reverse of most companies (where Level 1 = junior). New hires from tech companies often find it confusing. Executive bands (A, B, C) sit above the numbered bands.
Compensation by Level
Total compensation breakdown for Melbourne, Australia. All values in AUD.
| Band | Title | Base (Range) | Variable % | Total Comp (Range) | Equity |
|---|---|---|---|---|---|
| B4ii | Customer Service Rep / Contact Centre 0–2 yrs | A$55K – A$67K | 0% | A$55K – A$67K | None |
| B4i | Retail Consultant / Graduate / Associate Engineer 0–3 yrs | A$60K – A$78K | 3% | A$62K – A$82K | None |
| B3ii | Team Leader / Specialist 2–5 yrs | A$78K – A$105K | 6% | A$82K – A$115K | Telstra Share Plan |
| B3i | Engineer / Project Specialist / Senior Specialist 3–10 yrs | A$100K – A$145K | 10% | A$110K – A$165K | Telstra Share Plan |
| B2 | Senior Manager / Senior Specialist 8–18 yrs | A$140K – A$200K | 15% | A$160K – A$240K | Restricted Shares |
| B1 | General Manager / Director / Principal 15–25+ yrs | A$200K – A$300K | 25% | A$250K – A$400K | Restricted Shares + Perf. Rights |
| BC | Executive Director / Vice President 18+ yrs | A$300K – A$450K | 40% | A$420K – A$700K | Performance Rights |
| BB | Group Executive 20+ yrs | A$600K – A$1.2M | 75% | A$1.2M – A$2.8M | Performance Rights (major) |
| BA | CEO & Managing Director 25+ yrs | A$2.4M – A$2.4M | 100% | A$6.0M – A$9.6M | Performance Rights (maximum) |
Source: Glassdoor, PayScale, Levels.fyi, Telstra Annual Report FY2025, Telstra Enterprise Agreement 2024–2027. Australian values include superannuation (12%).
Total Compensation Range by Level
Salary by Career Stream — Australia
Breakdown by role across Telstra's key business areas. All figures in AUD per year including superannuation.
Technology & Engineering
| Role | Average | Range | P90 |
|---|---|---|---|
| Associate Software Engineer | A$72,000 | A$65K–A$82K | — |
| Software Engineer | A$104,000 | A$82K–A$145K | A$165K |
| Senior Software Engineer | A$148,000 | A$120K–A$191K | A$210K |
| Lead Software Engineer | A$177,000 | A$165K–A$197K | A$230K |
| Staff Engineer | A$195,000 | A$170K–A$240K | — |
| Data Engineer | A$147,000 | A$120K–A$180K | A$200K |
| Solutions Architect | A$195,000 | A$175K–A$217K | — |
| Site Reliability Engineer | A$111,000 | A$104K–A$140K | — |
| Cybersecurity Analyst | A$125,000 | A$100K–A$160K | — |
Network & Telecom
| Role | Average | Range | P90 |
|---|---|---|---|
| Network Engineer | A$95,000 | A$80K–A$120K | — |
| Telecommunications Engineer | A$105,000 | A$85K–A$135K | A$155K |
| Senior Network Engineer | A$130,000 | A$110K–A$160K | — |
| Network Architect | A$160,000 | A$140K–A$195K | — |
Customer & Operations
| Role | Average | Range | P90 |
|---|---|---|---|
| Contact Centre Rep | A$62,000 | A$55K–A$67K | A$73K |
| Retail Consultant | A$55,000 | A$49K–A$63K | — |
| Store Manager | A$85,000 | A$75K–A$95K | — |
| Service Operations Manager | A$110,000 | A$95K–A$130K | — |
Corporate & Product
| Role | Average | Range | P90 |
|---|---|---|---|
| Business Analyst | A$105,000 | A$85K–A$130K | — |
| Project Manager | A$125,000 | A$105K–A$155K | A$175K |
| Program Manager | A$155,000 | A$135K–A$185K | — |
| Product Manager | A$140,000 | A$115K–A$175K | — |
Leadership (Cross-Function)
| Role | Average | Range | P90 |
|---|---|---|---|
| Senior Manager | A$175,000 | A$140K–A$200K | — |
| General Manager | A$240,000 | A$200K–A$300K | — |
| Executive Director / VP | A$450,000 | A$300K–A$700K | — |
Source: Glassdoor, PayScale, Levels.fyi, Indeed, Telstra Annual Report FY2025. P90 = 90th percentile where available.
Global Operations — India & Philippines
Telstra operates a major technology hub in Bangalore (Embassy Tech Village) and a 3,500-seat contact centre operation in Manila. Telstra International spans 30+ countries.
India — Bangalore (Embassy Tech Village)
Bangalore Context
- Primary office: Levels 5–8, Block 7B, Embassy Tech Village
- Secondary: 12th Floor, Manyata Embassy Business Park
- Comp & Benefits rating: 4.0/5 (Glassdoor)
- Work-Life Balance: 4.4/5
Philippines — Manila (Zuellig Building, Makati)
| Role | Monthly | Annual |
|---|---|---|
| Contact Centre Rep | ₱25–35K | ₱300K–₱420K |
| Senior Agent | ₱35–50K | ₱420K–₱600K |
| Team Leader | ₱50–80K | ₱600K–₱960K |
| Operations Manager | ₱80–120K | ₱960K–₱1.4M |
Manila Context
- 3,500-seat contact centre operations
- Telstra Security Service Center (TSSC) for managed cybersecurity
- Largest foreign submarine cable owner in Philippines
- Established April 2013
Source: Glassdoor, PayScale, Telstra International. India figures in INR (annual CTC). Philippines figures in PHP.
Variable Pay & STI Payout History
Telstra's STI is driven by financial targets (EBITDA, ROIC), customer NPS (episodic NPS), and individual performance. STI for executives is paid 75% cash / 25% restricted shares.
6-Year STI Outcome (% of Maximum)
Variable Pay % by Band
CEO STI History (% of Maximum)
| Year | CEO | STI Outcome | Note |
|---|---|---|---|
| FY2020 | Andy Penn | 0% | COVID-19; voluntary pay cut |
| FY2021 | Andy Penn | ~68% | T22 progress; partial recovery |
| FY2022 | Andy Penn | ~78% | T22 complete; mobile growth |
| FY2023 | Vicki Brady | ~85% | First full year; EBITDA growth |
| FY2024 | Vicki Brady | ~82% | Enterprise write-down; mobile strong |
| FY2025 | Vicki Brady | ~90% | NPAT +31%; EBITDA A$8.6B |
Equity & Share Plan Structure
Telstra's executive remuneration uses the EVP framework. 25% of STI is delivered in restricted shares held by the Growthshare Trust. LTI is delivered through performance rights.
Active Plans
Executive STI Split (75/25)
Equity Eligibility by Band
| Band | STI Target | Equity Component | Instrument |
|---|---|---|---|
| B4ii–B4i | 0–3% | None | EA increases only |
| B3ii–B3i | 6–12% | Telstra Share Plan | Cash only (voluntary share purchase) |
| B2 | 15% | Possible small allocation | Cash + possible restricted shares |
| B1 | 25% | 25% STI in shares | Cash + restricted shares + possible perf. rights |
| BC | 40% | 25% STI in shares | Restricted shares + performance rights |
| BB | 75% | Major equity component | Performance rights + restricted shares |
| BA (CEO) | Up to 120% | Maximum equity | Performance rights + restricted shares |
Performance Rights — LTI Details
- Instrument: Performance rights (each entitles holder to one TLS share)
- Vesting: 3–4 year cliff — no partial vesting
- Hurdle: Relative Total Shareholder Return (TSR) vs telco peer group
- Performance metrics also include EBITDA, ROIC, and strategic measures
- No retest: if hurdle is not met, rights lapse permanently
- Dividends: Not paid on unvested rights
Telstra Share Plan
- All employees eligible for salary sacrifice share purchases
- Tax-effective under Australian tax rules (up to A$1,000 tax-free)
- Shares purchased on-market at prevailing prices
- Held in trust with minimum holding period for tax concession
ASX Insider Trades & Director Dealings
Disclosed to ASX under Corporations Act via Appendix 3Y. Disposals typically relate to vesting of restricted shares or tax obligations.
| Date | Person | Role | Type | Shares | Price (A$) | Value |
|---|---|---|---|---|---|---|
| Aug 2025 | Vicki Brady | CEO & MD | Disposal | 45,000 | A$4.15 | A$187K |
| Aug 2025 | Vicki Brady | CEO & MD | Vesting | 180,000 | EVP vesting | Deferred equity |
| Oct 2024 | Craig Dunn | Chairman | Acquisition | 50,000 | A$3.92 | A$196K |
| Sep 2024 | Michael Ackland | CFO | Disposal | 30,000 | A$3.85 | A$116K |
| Aug 2024 | Kim Krogh Andersen | GE Product & Technology | Vesting | 120,000 | EVP vesting | Deferred equity |
| Mar 2024 | David Burns | GE Enterprise (departed) | Disposal | 85,000 | A$3.78 | A$321K |
| Nov 2023 | Niek Jan van Damme | Non-Exec Director | Acquisition | 25,000 | A$3.65 | A$91K |
| Oct 2023 | Craig Dunn | Chairman (incoming) | Acquisition | 100,000 | A$3.72 | A$372K |
Foreign Ownership Restriction
Telstra is subject to a foreign ownership restriction under the Telstra Corporation Act 1991. Aggregate foreign ownership is limited to 35%, and individual foreign persons are limited to 5%. This restriction is tracked via the ASX Settlement Operating Rules (FOR list).
Source: ASX announcements, Telstra Annual Report FY2025.
Executive Compensation — FY2025
| Year | FR | Total | Note |
|---|---|---|---|
| FY2020 | A$2.4M | ~A$2.4M | 0% STI; COVID voluntary pay cut |
| FY2021 | A$2.4M | ~A$5.1M | STI reinstated; T22 progress |
| FY2022 | A$2.4M | ~A$5.8M | T22 completed; final year as CEO |
AGM Remuneration Backlash (Oct 2024)
Telstra faced significant shareholder pushback at the October 2024 AGM, with ~15% of votes cast against the remuneration report — up sharply from just 2.9% the prior year. While this did not reach the 25% threshold required for a formal "strike" under the two-strikes rule, it represented the strongest protest vote on pay in Telstra's recent history. Shareholders expressed concern about CEO pay (A$6.73M) during a year of 2,800 layoffs, a A$311M Enterprise write-down, and A$250–350M restructuring costs.
Senior Leadership Compensation
Executive compensation at Telstra uses the Executive Variable Remuneration Plan (EVP). STI is paid 75% cash / 25% restricted shares. LTI is delivered through performance rights with 3–4 year cliff vesting.
EVP Structure
- STI: 75% cash, 25% restricted shares (1–2 year tranches)
- LTI: Performance rights with 3–4 year cliff vesting (TSR-based)
- Dividends on restricted shares held by Growthshare Trust, not paid to executive
- On vesting, allocation adjusted to include dividend equivalent in additional shares
- Board retains full discretion to reduce outcomes to zero
Benefits & Perks
Financial
Leave
Career & Development
- All Roles Flex — industry-leading flexibility since 2014; every role has a flex option
- Free Udemy, LinkedIn Learning, O'Reilly, and A Cloud Guru access
- Certification sponsorship — industry certs fully funded
- 70:20:10 development model (on-job, social, formal learning)
- Internal mobility — active internal transfer program
- Employee Assistance Program (EAP) — 24/7 counselling
- Graduate programs — structured rotational programs across business units
- Career Qualified in Telco — professional accreditation framework
Performance & Pay Progression
Telstra uses a 5-point annual performance rating system. Reviews in December, raises in February. EA staff receive guaranteed increases in October. Promotion eligibility typically requires 2 years in current role.
Promotion Timeline & Hike
Performance Framework
Glassdoor Ratings
Episodic NPS (eNPS)
Telstra uses "episodic NPS" across 5 customer interaction types (sales, billing, assurance, modify, move). eNPS is a key business metric that directly influences employee bonuses across all levels.
Key Nuances & Insights
Telstra's Band 4 = junior, Band 1 = senior system is a legacy of old Telecom Australia. Every new hire from a tech company (where L1 = junior) finds it confusing. Despite multiple transformations (T22, T25), this legacy naming persists.
~70% of employees are under the Enterprise Agreement with guaranteed annual increases (4%, 3.5%, 3%). Individual contract employees (Bands 1, C, B, A) have no guaranteed increases but uncapped upside through STI/LTI. This creates a distinctly split workforce experience.
In a country where Telstra has ~47% mobile market share, the 30% staff discount on all products/services is substantial for a typical family. Mobile plans, broadband, Foxtel — it adds up. This rarely appears in compensation comparisons but is valued by staff.
T22 cut 25,000 direct and indirect roles (one-third of workforce). T25 cut another ~3,200. Simultaneously, 1,500+ were hired in AI, data, and cybersecurity at market-rate premiums. Legacy telco workers were displaced while new tech hires received higher pay, creating significant internal tension.
Vicki Brady's A$6.73M total comp in FY25 — while 2,800 workers were being laid off and A$311M was written down — led to ~15% of shareholders voting against the remuneration report at the 2024 AGM (up from 2.9% the prior year). While this fell short of the 25% threshold for a formal 'strike' under the two-strikes rule, it was the strongest protest vote on pay in Telstra's recent history.
The A$700M Accenture Data & AI joint venture (60% Accenture, 40% Telstra) immediately cut/transferred 209 roles, with some offshored to India. Rather than building AI capability in-house, Telstra is outsourcing it — a significant strategic bet on partnerships over internal talent.
Telstra introduced flexible work for ALL roles in 2014 — a decade before COVID made it common. Every role has a defined flexibility option, including operational and field roles. This has been a major retention tool, especially for working parents and regional employees.
The NES minimum is 10 days personal/carer's leave. Telstra provides 15 days. Combined with 16 weeks gender-neutral parental leave, the leave package is competitive even against Big 4 banks, and significantly better than most tech companies in Australia.
Telstra Group owns Telstra Limited, Telstra InfraCo (271 employees), and 51% of Amplitel (towers, 49% owned by Future Fund consortium). Each entity may have different comp structures, and moving between them requires navigating separate processes.
Despite the 'transformation to tech company' narrative, Telstra maintains a 3,500-seat call centre in Manila. Philippine reps (₱25K–50K/month) cost roughly one-quarter of Australian equivalents (A$55K–67K/year). This cost base is critical to consumer division margins.