The fund also expressed disappointment at Telstra's latest executive pay proposals – including a 15% pay rise for Thodey – at a time when future earnings potential hinges on negotiations over its participation in Australia's NBN fiber broadband project.
“The [fund] is concerned at the use of a free cash flow measure as a hurdle for the Long Term Incentive Plan while the company is negotiating payments from NBN Co - and the limited clarity on how this approach will align remuneration to the creation of shareholder value,” it said.
The Future Fund has a long-stated goal of reducing its portfolio's reliance on Telstra stock. The investor has lowered its stake from 16.4% since August last year, and is planning more sell-offs over the medium term.
Telstra's stock price has fallen from a high of A$3.60 to its current level of A$2.65 over the 18-month period.
The Fund is sworn to agree to rules not disrupt financial markets with its stake purchases and sales, The Australian said.
The Future Fund and Telstra have been at loggerheads over whether the recent divestments have contributed to Telstra's declining share prices.
MORE ARTICLES ON: Australia-NBN, Future Fund, Telstra