David Thodey to shuffle Telstra deck * John Durie * From: The...

David Thodey to shuffle Telstra deck

* John Durie
* From: The Australian
* March 29, 2010 12:00AM



"TELSTRA chief executive David Thodey will attempt to put his stamp on the company with a series of senior management changes today, including the appointment of a new boss for the telco's consumer division.

Telstra is also expected to confirm, as reported in The Weekend Australian, that company veteran and Big Pond chief Justin Milne has quit to pursue other interests.

Today's reshuffle is seen as a crucial move in Mr Thodey's battle to overcome growing internal unrest and investor unease over Telstra's future, with or without the national broadband network.

Mr Milne's position -- as with many of the senior management roles -- has been fluid since Mr Thodey took the reins from Sol Trujillo last May. Mr Milne's sudden departure could unsettle investors, because Mr Milne -- the former head of OzEmail and the Microsoft Network in Australia -- was viewed as the man most likely to drive Telstra's new media plans.

Mr Thodey arguably has the toughest job in corporate Australia, given the size of the company and the constant political pressure it faces. The Australian understands there is growing discontent among Telstra's senior ranks due to uncertainties over the NBN, indecision over who will run various divisions and the perception that competitors are stealing ground from the company.

Some within the company expect a major shake-up of the divisional structure as part of today's announcements or in the near future, which could have something to do with Mr Milne's decision to leave.

Mr Thodey was left to clean up the upheaval left by Mr Trujillo, who had put the company at loggerheads with the government, angering shareholders and Telstra staff. The highly personable Mr Thodey brought a fresh face to the job. While outsiders have found him agreeable to deal with, some inside the company have grown tired at his perceived indecision, particularly in personnel matters.

Mr Thodey has a number of key executives in acting positions. Five months after consumer boss David Moffatt left, he is yet to name a permanent replacement. That could come today, with an outsider expected to replace current consumer boss Glenice Maclellan.

Mr Milne was reportedly keen to pursue international opportunities. Both Mr Milne and a company spokesman declined to comment yesterday.

Telstra faces increased competition from Optus and other mobile phone and broadband providers, while also attempting to negotiate with the government on its plans to effectively structurally divide the company through the NBN project.

Communications Minister Stephen Conroy has made it clear that the two sides are at the point where a decision needs to be made -- whether the government works with Telstra or on its own.

The NBN will be a wholesale network, so rival internet service providers will be able to use it to compete with Telstra. Some in Telstra believe a management reshuffle is needed to prepare the telco for increased competition."