update Telstra's new chief executive David Thodey will receive a fixed annual remuneration of $2 million or $1 million less than his predecessor, compensated by a significant incentive scheme. The $2 million base salary was outlined in Thodey's contract, penned by law firm, Freehills, which Telstra released to the Australian Stock Exchange this morning. Thodey's regular pay will be somewhat smaller than Sol Trujillo's, who received $3 million annual fixed pay throughout his tenure. Trujillo's package also included a $3 million short-term cash incentive as well as $3 million in deferred shares and up to 5 million Telstra shares as long-term incentives. In 2007, Trujillo's total annual remuneration was over $11 million. Thodey's short-term incentives have been split into two components. Should Thodey meet "target hurdles" in the coming financial year, he could expect an extra 80 per cent addition to his $2 million fixed pay.