Telstra is disclosing "actual pay" to provide more transparency for shareholders, its financial report said. But as many senior executives changed roles over the past 12 months, this voluntary information has not been provided for other senior executives.

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When calculated in line with the Corporations Act, Mr Penn's salary increased from $4.56 million in 2018 to $5.12 million in 2019.

Mr Penn revealed a radical turnaround strategy, called Telstra 2022 or T22, in June 2018 after five-year lows in the share price led to an investor revolt on executive pay and an outcry from shareholders about the company's performance.

The plan included simplifying the telco's internet and mobile plans, the creation of an InfraCo division to handle infrastructure and cost reductions, such as slashing 8000 staff from Telstra's workforce.

Telstra shares have recovered strongly over the past 12 months after hitting multi-year lows. The stock has gained about 40 per cent from $2.89 this time a year ago, to as high as $3.99 last month.

Its shares were about 1.7 per cent lower in early afternoon trading on Thursday as investors sold off equities in general amid rising fears of a global recession.

The telco's share price peaked at $6.59 in February 2015 and has since faced headwinds, including the rollout of the National Broadband Network putting pressure on profit margins and growing competition for mobile customers keeping prices low.

I understand that executive remuneration is a very contentious topic and candidly that’s why I’m focused on running the business.

Andy Penn

Telstra chairman John Mullen last year defended paying executives millions of dollars after the biggest swing against the pay packets in a decade at the telco's annual general meeting, saying it was the "lowest salary Telstra has paid a CEO in over eight years".

'Disgrace'

Telco union CEPU state secretary Shane Murphy said the pay rise was a "disgrace".

"The union is absolutely appalled by Andy Penn giving himself a 33 per cent pay rise while under his watch, 9500 jobs have been axed, the company is losing 40 per cent in profit, and workers are being offered meagre pay rises of up to 1.8 per cent or 2 per cent," he said.

"Not to mention that customers across Australia continue to be let down as Telstra struggles to resource the network with fewer and fewer staff - all while Penn takes home $5 million dollars.

"The union will be campaigning against such an exorbitant increase at the next shareholder meeting in September."

Mr Penn said the board and remuneration committee made all the decisions around executive pay and took into account a lot of advice and consideration.

"I understand that executive remuneration is a very contentious topic and candidly that’s why I’m focused on running the business, that's why I'm focused on T22, the best experience for customers and return for shareholders," he said.