Thodey scores Telstra CEO role, chairman McGauchie resigns

Stuart Corner
Friday, 08 May 2009 04:32

IT Industry - Strategy

David Thodey, currently head of Telstra's corporate and government business, has been named the new CEO; chairman Donald McGauchie has resigned to be replaced by Catherine Livingstone and CFO John Stanhope has been made an executive director in the biggest reshuffle at the top in half a decade.

Thodey's appointment comes as no surprise, he had long been tipped as one of the lead candidates for the top job, but while pressure has been mounting on McGauchie in recent weeks, most notably from the chair of Telstra's largest shareholder, the Future Fund, the announcement of his departure was not expected so soon. It is effective immediately. McGauchie had been a director since 1998 and chairman since 2004

McGauchie suggested that speculation about his hold on the chairman's position had become a self-fulfilling prophecy. ”Telstra's strength and ongoing performance are the paramount priority. It is my view that speculation on my tenure was a distraction to the business. Nothing should be allowed to get in the way of David and the management team getting on with the important job ahead of them.”

Thodey, 54, has been a senior executive at Telstra for eight years. He joined Telstra from IBM where he was CEO of IBM's Australian and New Zealand operations. In his current position, in addition to being responsible for Telstra's corporate, government and large business customers in Australia he is also responsible for TelstraClear in New Zealand and Telstra's international sales division.

Thodey promised that Telstra's strategy would remain unchanged but avoided any mention of Telstra's much criticised aggressive strategy to the government and all things regulatory under the four year reign of his predecessor, Sol Trujillo. He said: ”Our strategy remains unchanged: to continue to provide customers with world-class products and services. The key to Telstra continuing to win and to serve customers will be finishing our transformation that started nearly four years ago. Completing the transformation will enable us to deliver a superior customer experience and the financial outcomes that our shareholders expect.”

Livingstone has been a Telstra board member since 2000. She ,was chairman of CSIRO from 2001 to 2006 and, according to Telstra's web site is currently a director or Macquarie Bank, Macquarie Group and Worley Parsons. She has a degree in accounting and has held several finance and general management roles predominantly in the medical devices sector. She was the CEO of Cochlear from 1994 to 2000. She was also a director of right-wing think tank, the Sydney Institute from 1998 to 2005

It was also announced that Peter Willcox had tendered his resignation to the board due to his concern that the James Hardie judgment may cause embarrassment to the company. However, the board has asked him to remain as a director until the AGM in November ”because of his valuable contribution to a number of vital current issues.”