The devil in the NBN detail

NBN Co's annual report has attracted criticism about executive pay and bonuses but it's the activation rates that are the real worry.

Last week’s release of NBN Co’s 2012 annual report attracted a chorus of criticism about the organisation’s executive pay and bonuses. A closer reading of the report reveals that the real focus of any scrutiny needs to be on the complexity of the project and the big risks to the successful delivery of the National Broadband Network.

Despite the negative headlines, NBNCo met the revised targets of their 2012 business plan with the project passing 212,000 premises against the projected 213,000. That number however, is less than half the 495,000 premises expected in the original plan released in 2010.

Giving bonuses to senior staff after missing those original targets attracted the criticisms of excessive executive pay, however concerned taxpayers should keep in mind average senior management remuneration at NBN Co’ is $827,000, just over a third of the $2.3 million received by Telstra's leadership and about the same as Fairfax’s average of $850,000.

Executive pay at NBN Co doesn’t appear excessive by industry standards and what taxpayers probably should be more concerned about is that there are eleven senior managers listed in the annual report.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter your SMS code' }}

A text message with your verification code was just sent to {{user.DayPhone}}

We cannot send you a code via SMS to {{user.DayPhone}}

Hi {{ user.FirstName }}, please provide your mobile number.

{{ content.trialHeading.replace('{0}', user.FirstName) }}

We'll send you a text message with a verification code to start your free trial.

Log in

{{ content.upgradeHeading.replace('{0}', user.FirstName) }}

The email address you entered is registered with InvestSMART.

Login or to reset your password, select Forgotten password

Email is required.
Email must be a valid email.
Password is required.
First name is required.
Last name is required.
Mobile phone number is required.
Mobile phone number is invalid.
You must accept the terms and conditions.

Already an InvestSMART member? Log in

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

OR

Looks you are already a member. Please enter your password to proceed

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device

Not a member? Sign up

Forgotten password? Click here

Your membership to InvestSMART Group recently failed to renew.


Please make sure your payment details are up to date to continue your membership.


Having trouble renewing?

Please contact Member Services on support@investsmart.com.au or 1300 880 160

You've recently updated your payment details.

It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.


If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.


Still having trouble viewing content?

Please contact Member Services on support@investsmart.com.au or 1300 880 160

{{ upgradeCTAText }}

Updating information

Please wait ...

Trial

{{ productPrice }} / day
( GST included )
Price $0
Discount -{{productDiscount}}
GST {{productGST}}
TOTAL   (inc. GST) {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device

Not a member? Sign up

Forgotten password? Click here

Related Articles