The hunt for three new directors to arrest the company"s slide into network and management legacy will also force a 52 percent increase in funds for board remuneration - a request which clearly failed to impress many shareholders who have seen their self-funded retirement capital eroded by Telstra"s lackluster share price.

One technical bungle shareholders demanded answers for included so-called "cable cancer", a condition where insulating gel surrounding many communications cables reacts with the conductive core causing corrosion and service degradation.

Asked if the manufacturer or supplier of the cable could be sued for compensation, and why shareholders should carry the cost of the bungle, McGauchie responded that the option of litigation had been examined on its merits and ruled out.

"It looks like one of those bad decisions that gets made from time to time," he said.

Trujillo was more forthcoming, saying his new chief operating officer Greg Winn had actually brought segments of decaying pipe to a board meeting to illustrate the problem to senior management.

"I share your concerns about the network," Trujillo said.