Penn takes senior Telstra post

FORMER AXA Asia Pacific chief executive Andrew Penn has resurfaced as Telstra's new chief financial officer, although he is virtually unknown in the telecommunications sector.

By InvestSMART · 15 Dec 2011

By InvestSMART ·
15 Dec 2011

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FORMER AXA Asia Pacific chief executive Andrew Penn has resurfaced as Telstra's new chief financial officer, although he is virtually unknown in the telecommunications sector.

Mr Penn is well regarded by observers of the financial services market where he headed one of the biggest companies in the Asia Pacific region until it was bought for $14.6 billion earlier this year.

Telstra announced yesterday that Mr Penn would become its new chief financial officer in March, replacing company veteran John Stanhope.

In more than 20 years at AXA, Mr Penn was chief financial officer, the chief operations officer, head of transformation, and head of operations in Asia.

Mr Stanhope's replacement had been expected to come from inside Telstra, with deputy financial officer Mark Hall tipped to take the job.

Instead, Telstra's chief executive, David Thodey, and the board have selected another outsider as a senior manager as Telstra transforms from an engineering-led company to a sales and marketing-led operation.

"I am delighted to welcome Andy to this critical position," Mr Thodey said yesterday.

"Andy has extensive experience in Australia and overseas, a proven record of success as a chief financial officer, and a demonstrated ability to create shareholder value in complex businesses."

Analysts who knew Mr Penn from AXA said he was a likeable and thoughtful character who helped improve sales and efficiency at AXA and build its business in Hong Kong.

"He was really the driver of the business rather than a cost-out guy. He was more about strategy and ultimately helped get a pretty good deal for AXA shareholders," BBY analyst Brett Le Mesurier told BusinessDay.

Mr Penn will join Mr Thodey in the executive leadership group but a company spokeswoman confirmed yesterday that he would not sit on the board as Mr Stanhope did.

Mr Stanhope's departure was announced in June this year and he has been conducting a farewell tour of the industry in recent weeks, according to an insider. Mr Hall will be acting chief financial officer between Mr Stanhope's departure on December 30 and Mr Penn's arrival.

Telstra shares closed steady at $3.27 yesterday.

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Frequently Asked Questions about this Article…

Who is Andrew (Andy) Penn and what experience does he bring as Telstra's new chief financial officer?

Andrew (Andy) Penn is the former AXA Asia Pacific chief executive who spent more than 20 years at AXA in roles including chief financial officer, chief operations officer and head of operations in Asia. The article notes he is well regarded in financial services and helped improve sales and efficiency at AXA and build its Hong Kong business.

When does Andy Penn start as Telstra's chief financial officer and who will cover the role until then?

Telstra announced Penn will become its new chief financial officer in March. Deputy financial officer Mark Hall will act as chief financial officer between John Stanhope’s departure on December 30 and Penn’s arrival.

Who is Andy Penn replacing at Telstra and why is this change notable?

Penn replaces long-time Telstra veteran John Stanhope. The change is notable because the company picked an external candidate rather than promoting the expected internal successor, and it comes as Telstra shifts from an engineering-led company to a sales and marketing-led operation.

Will Andy Penn be a Telstra board member as chief financial officer?

No. A Telstra spokeswoman confirmed Penn will join the executive leadership group but will not sit on the Telstra board, unlike his predecessor John Stanhope.

How have analysts described Andy Penn’s leadership and impact at AXA?

Analysts who knew Penn from AXA described him as likeable and thoughtful, crediting him with improving sales and efficiency, driving business strategy rather than just cutting costs, and helping secure a good outcome for AXA shareholders.

What did Telstra’s CEO David Thodey say about appointing Andy Penn as CFO?

Telstra CEO David Thodey said he was delighted to welcome Andy, highlighting Penn’s extensive experience in Australia and overseas, a proven record as a chief financial officer, and his demonstrated ability to create shareholder value in complex businesses.

What does the appointment of an outsider CFO signal about Telstra’s strategic direction?

Choosing an external senior manager like Penn aligns with Telstra’s broader transformation from an engineering-led company toward a sales and marketing-led operation, signalling a focus on commercial strategy and leadership experience.

How did the market react to the CFO announcement and what was Telstra’s recent share price?

According to the article, Telstra shares closed steady at $3.27 the day after the announcement, indicating no immediate disruptive market reaction to the CFO appointment.