Fegan resigns from Telstra after missing CFO post

Former chief executive of St George Bank leaves Telstra after former AXA chief Andy Penn named CFO.

By InvestSMART · 21 Dec 2011

By InvestSMART ·
21 Dec 2011

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Former chief executive of St George Bank leaves Telstra after former AXA chief Andy Penn named CFO.

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

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Frequently Asked Questions about this Article…

Why did Paul Fegan resign from Telstra?

Paul Fegan resigned from Telstra shortly after being passed over for the chief financial officer role. He had been hired earlier in the year to run strategy and corporate services and told staff he enjoyed the role, but left after the CFO appointment went to someone else.

Who was appointed Telstra CFO instead of Paul Fegan?

Telstra appointed Andy Penn, the former chief executive of AXA Asia Pacific, as its new chief financial officer.

What role did Paul Fegan hold at Telstra and what is his background?

At Telstra, Paul Fegan was the executive in charge of strategy and corporate services. Before joining Telstra he was best known as the former chief executive of St George Bank, giving him a strong financial services background.

How did Telstra’s CEO David Thodey respond to Fegan’s resignation?

In an internal memo, David Thodey confirmed Paul Fegan’s resignation and praised him for bringing "a strong commercial focus" to the businesses he ran.

Who will lead Telstra’s strategy and corporate services after Fegan leaves?

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

Are there internal candidates being considered to replace Telstra CEO David Thodey in the future?

Yes. The article names several executives regarded as potential successors to David Thodey in the longer term, including Gordon Ballantyne (who oversees consumer-facing businesses), Kate McKenzie (pricing, product development and marketing), and chief operating officer Brendon Riley. The article also says Thodey is expected to remain at the telco for several years.

What experience does Andy Penn bring to Telstra as CFO?

Andy Penn brings experience as the former chief executive of AXA Asia Pacific, meaning he comes to Telstra from a senior role in the financial services/insurance sector.

What does the article say about Telstra’s position on the national broadband network (NBN) and market share?

The article highlights that David Thodey has steered Telstra through negotiations over participation in the national broadband network and has helped the company reclaim market share, suggesting management has been actively engaged in major industry developments.