Fegan resigns from Telstra after former AXA chief lands CFO post

PAUL Fegan, the former chief executive of St George Bank, has quit Telstra shortly after being overlooked as its chief financial officer.

By InvestSMART · 21 Dec 2011

By InvestSMART ·
21 Dec 2011

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PAUL Fegan, the former chief executive of St George Bank, has quit Telstra shortly after being overlooked as its chief financial officer.

Telstra chief executive David Thodey last week passed over Mr Fegan for the post, opting to appoint AXA Asia Pacific's former chief executive, Andy Penn.

Mr Fegan was hired to become Telstra's executive in charge of strategy and corporate services at the start of this year.

Analysts said Mr Fegan's financial services background made him a solid candidate to take over from retiring CFO John Stanhope.

Mr Thodey is expected to remain at the telco for several years. He has steered the group through negotiations for participation in the national broadband network and reclaimed market share.

Other executives regarded as candidates to replace Mr Thodey include Gordon Ballantyne, who is charge of consumer-facing businesses; Kate McKenzie, who runs pricing, product development and marketing; and chief operating officer Brendon Riley.

Tony Warren will be acting managing director of strategy and corporate services from mid-January. He has played a key role, leading negotiations on the national broadband deal.

In an internal memo to staff, Mr Thodey confirmed that Mr Fegan had resigned and praised him for bringing "a strong commercial focus" to the businesses he ran.

Mr Fegan told staff that he had enjoyed the experiences of the strategy role.

"The industry is going through rapid change and Telstra is well positioned to capitalise on the opportunities that these market conditions present," Mr Fegan said.

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Frequently Asked Questions about this Article…

Why did Paul Fegan resign from Telstra after being passed over for CFO?

Paul Fegan resigned from Telstra shortly after being overlooked for the chief financial officer role. The article says he left after Telstra appointed Andy Penn as CFO; Telstra CEO David Thodey confirmed Fegan’s resignation and praised his commercial focus.

Who was appointed Telstra CFO instead of Paul Fegan?

Telstra appointed Andy Penn, the former chief executive of AXA Asia Pacific, to the chief financial officer position instead of Paul Fegan.

What role did Paul Fegan hold at Telstra before his resignation?

Paul Fegan was hired at the start of the year as Telstra’s executive in charge of strategy and corporate services before he resigned.

Did analysts see Paul Fegan as a likely candidate to become Telstra CFO?

Yes. Analysts told the article that Fegan’s financial services background made him a solid candidate to replace the retiring CFO John Stanhope, which is why his being passed over was notable.

Who will take over the strategy and corporate services role after Paul Fegan left?

Tony Warren will be acting managing director of strategy and corporate services from mid‑January; the article notes he played a key role in leading negotiations on the national broadband deal.

How did Telstra CEO David Thodey describe Paul Fegan’s contribution?

In an internal memo quoted in the article, David Thodey praised Paul Fegan for bringing “a strong commercial focus” to the businesses he ran and confirmed Fegan had resigned.

Which Telstra executives are being discussed as potential future CEO candidates?

The article lists several executives regarded as possible successors to CEO David Thodey: Gordon Ballantyne (consumer-facing businesses), Kate McKenzie (pricing, product development and marketing), and chief operating officer Brendon Riley.

What does this leadership change mean for investors watching Telstra’s strategy and market position?

According to the article, Telstra’s leadership changes come as the industry goes through rapid change, but both Paul Fegan and Telstra’s CEO said the company is well positioned to capitalise on market opportunities. Thodey is expected to remain for several years and has steered the group through national broadband negotiations and efforts to reclaim market share.