Telstra Corporation Ltd (ASX: TLS) has today announced that long-running CEO David Thodey will step down from the top job in May, to make way for Chief Financial Officer (CFO) Andrew Penn.
Mr Thodey has been a great influence on our largest telecommunications company, having reinvigorated the telco's public image whilst also transforming it into a more nimble technology company.
Telstra Chairman Catherine Livingstone praised the six years of leadership Mr Thodey brought to the company, highlighting its doubling in size (from $40 billion to over $80 billion currently) as a testament to the value he created.
She said, "David has been an outstanding chief executive for our customers, shareholders and employees. His passion for customer service and instigating true cultural change has had an enormously positive effect on our company, which has been reflected in our financial performance in recent years."
From his work on internal efficiencies and improvement, including the implementation of domestic violence leave, to his negotiations with the government's NBN Co and the divestment of legacy assets, he's undoubtedly leaving Telstra in a much better position than when he took on the role, back in May 2009.
Telstra's share price since May 2010. Click to Enlarge. Source: Google Finance.
Andrew Penn, age 51, has also played a big role in Telstra as CFO since March 2012 and comes with a wealth of experience from previous leadership roles.
Ms Livingstone said, "Andy is a seasoned executive in global markets with proven capability to lead organisations through significant transitions and major expansion."
"He has played a key role in developing Telstra's long-term growth strategy and we are delighted he will continue to lead Telstra's plans to increase customer advocacy, core business value and capitalise on new growth opportunities," she said.
Telstra currently has ambitious plans to grow revenues from Asia to one-third of the group's total by 2020. It is also participating in the development of the National Broadband Network and is implementing a nationwide WiFi rollout.
Mr Penn said, "The Telstra Board and leadership team has developed compelling plans to 2020, and beyond, which will expand our capability as an increasingly global connectivity company and position us for future growth."
Mr Penn will be based in Melbourne and be entitled to $2.325 million in fixed annual pay, up to a maximum of 200% of his fixed pay as short term incentives as well as long-term performance rights under Telstra's currency LTI plans.
