Fegan resigns from Telstra after missing CFO post

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.

With

MALCOLM MAIDEN