Stanhope hangs up on a stellar career

TELSTRA chief financial officer John Stanhope is retiring after more than four decades with the company, though not until he seals a deal locking in billions of dollars of cash payments from government-owned NBN Co.

By InvestSMART · 30 Jun 2011

By InvestSMART ·
30 Jun 2011

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His last big task will be helping the board get shareholder approval for Telstra's deal with NBN Co, under which it will receive an after-tax $9 billion over the next 35 years.

At 60 years of age and after eight years as CFO, Mr Stanhope's retirement has been expected. He is believed to be looking for a "post-executive" career.

Mr Stanhope was appointed CFO in 2003 by former chief executive Ziggy Switkowski and has served three chief executives.

Telstra chief executive David Thodey said Mr Stanhope's contribution to the company had been "enormous".

"We look forward to him continuing to play a critical role as we seek shareholder approval for Telstra's participation in the national broadband network," Mr Thodey said.

Ian Martin, an analyst with brokerage RBS, described him as having provided continuity and certainty for the company when it replaced both the former chief executive and former chairman after the rocky Trujillo era.

Telstra yesterday started looking for a replacement CFO and BusinessDay believes the front runner is the deputy CFO, Mark Hall.

Mr Stanhope, who in 1967 joined what was then called the Postmaster-General's Department, will depart after 44 years with the company.

He was appointed director of finance in 1995 and helped with the gradual privatisation of Telstra in partial floats in 1996, 1999 and 2003.

By now a specialist in redundancy packages, Mr Stanhope has overseen the departure of about 45,000 staff in 15 years from 76,500 in 1996 to about 30,000 full-time domestic staff this year.

Mr Stanhope was reportedly a contender for the top job when Sol Trujillo resigned in early 2009, but was beaten by Mr Thodey.

Mr Stanhope will stay on until December 30, 10 days after the deal with NBN Co either wins shareholder approved or lapses.

When he leaves, he will also retire from 10 board positions at companies associated with Telstra, including as chairman of Telstra Clear, and a director of Foxtel and Telstra Super.

He retains a spot on the board of the Melbourne International Jazz Festival.

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Frequently Asked Questions about this Article…

Who is John Stanhope and why is his Telstra CFO retirement important for investors?

John Stanhope is Telstra’s long-serving chief financial officer who is retiring after more than four decades with the company. His retirement is notable for investors because he has been central to Telstra’s financial strategy, continuity through leadership changes, and is staying on to help secure shareholder approval for a major NBN Co deal that would deliver significant cash to the company.

How long did John Stanhope work at Telstra and what roles did he hold?

Stanhope joined what was then the Postmaster‑General’s Department in 1967 and will leave after 44 years with Telstra. He was appointed director of finance in 1995, helped manage Telstra’s partial privatisations (1996, 1999 and 2003), became CFO in 2003 and has served under three chief executives.

What is the Telstra–NBN Co deal John Stanhope is helping to finalise?

The deal with government‑owned NBN Co would see Telstra receive an after‑tax payment of about $9 billion spread over the next 35 years. Telstra needs shareholder approval for the arrangement, and Stanhope is remaining in the CFO role to help the board through that approval process.

What should everyday investors watch regarding the shareholder vote on the NBN Co deal?

Investors should watch the shareholder approval process and timing — the vote will determine whether Telstra secures the after‑tax $9 billion payment from NBN Co. The outcome could materially affect Telstra’s cash flow profile and investor returns, and Stanhope will remain in place until the deal either wins approval or lapses.

When will John Stanhope officially step down from his Telstra roles?

Stanhope will stay on until December 30, which is ten days after the NBN Co deal either wins shareholder approval or lapses, at which point he will retire from his Telstra executive role and associated company boards.

Who is being considered to replace John Stanhope as Telstra CFO?

Telstra has begun a search for a replacement CFO, and media reports (BusinessDay) name deputy CFO Mark Hall as the front‑runner to succeed Stanhope.

How has John Stanhope influenced Telstra’s workforce and cost structure?

Stanhope has overseen significant staff reductions over the past 15 years, managing redundancy programs that reduced the domestic full‑time workforce from about 76,500 in 1996 to roughly 30,000 this year — a reduction of about 45,000 employees.

From which Telstra‑related boards will Stanhope retire and which outside board will he keep?

On leaving Telstra, Stanhope will retire from around ten company‑associated boards, including roles as chairman of Telstra Clear and as a director of Foxtel and Telstra Super. He will retain a spot on the board of the Melbourne International Jazz Festival.