David Thodey announces retirement from role of Telstra CEO
The head of Australia’s biggest telco David Thodey is set to retire on May 1, to be replaced by current chief financial officer Andrew Penn as the CEO of Telstra.
Thodey has headed the company since 2009, having joined in 2001 as group managing director of Telstra Mobile, and has spearheaded Telstra’s changed focus with increased emphasis on customer satisfaction.
During his tenure the company’s value has risen from $40bn to over $80bn. It is unclear whether the change will see a reshuffle in other senior management positions.
Chair of Telstra Catherine Livingstone said in a statement this morning: “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.”In a statement Thodey said: “Our journey to being a world class customer service organisation is generational progress. We have achieved much change but there is a lot more to do.”
Penn, a former group CEO of Axa Asia Pacific, has been with the company since early 2012.
Livingstone said: “Andy is a seasoned executive in global markets with proven capability to lead organisations through significant transitions and major expansions.”
Penn’s fixed remuneration will be $2.325m per year including superannuation contributions.
Alex Hayes
Putting an accountant in charge can only mean the view at Telstra is that growth in revenue and profit is largely over. Time to bring in the budget cut chain-saw.
Mr Penn will have his strategic review completed within May and announced within June. First up – staff cuts, closely followed by cuts to marketing and network investment.
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Yep, bean counters tend to do that.
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The guy certainly did well by the shareholders. He found Telstra’s Alan Bond twice in the Labor and then Liberal governments.
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seems to me that he has been very good for shareholders, mediocre for customers and very bad for employees
that’s the modern hierarchy of priorities for a CEO, no doubt about it
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#4 I think you’re being a little unfair.
Telstra have added millions of services under Mr Thodey. People vote with their wallets and any business adding customers and making money must be doing something right.
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@1219, I’m not sure how things are for employees these days, but I think it’s unfair to say that he’s only been mediocre for customers. As a long term customer, under his stewardship I’ve been converted from a big detractor to an advocate. I am generally surprised (though now starting to expect) great service every time I call up or go into a store. From personal experience I think Telstra are a case study in turning around poor customer service, and I would imagine that their NPS scores probably reflect that.
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Be fascinating to see the impact on the other DRs. Ballantine? He’s the guy who more than anyone else has delivered on the customer focus. If he goes then no one left has any customer pedigree as far as I can tell. Wouldn;t surprise to see McKenzie and Nason go as they seem v. close to Thodey and from an external perspective hard to see what they’ve done (Ok Nason may have cut some costs but Buckman was CMO and did all he marketing stuff albeit technically reporting to McKenzie for most of that time). Time to step up Jo Pollard?
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Echo Former Detractor. He’s done a good job.
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