Telstra (ASX:TLS) in Turmoil as CEO David Thodey Takes Charge
Sunday, March 28th, 2010
With a lot of uncertainty swirling around Telstra (ASX:TLS), chief executive officer David Thodey is making a number of moves to solidify the top ranks in order to deal with the perception the company is in turmoil.
One of those moves is Big Pond head Justin Milne leaving the company, who has been rumored to have quit to pursue other interests, but assuredly wasn't given a choice.
The problem with Milne leaving is he was considered the key person to expand the plans of Telstra related to new media opportunities. This could further exasperate shareholders in the company who have been skittish about Telstra since Sol Trujillo was removed from leadership.
With the national broadband network in Australia about to level the playing field more and increase competition for Telstra, it is seen as vital that a team is put in place and things settled down to prepare to meet the challenge set before them.
Not only has there been shareholder concerns and battles with the government, but internally there's been a lot of uncertainty and concern over what seems to be a lack of cohesion as the mobile business climate is changing rapidly in Australia.
So Thodey must take charge and put a team in place that he can count on to be there during the turbulent times the company is facing. If he fails to do that, the company will erode and implode even further.
Thodey is still trying to pick up the pieces after Trujillo left the company, but it is time he sets things in place and moves forward, as the uncertainty has gone on as long as it can without meaningful change made to set the company on a firmer foundation. Too many things have been left in the air for too long.
So hopefully the change in many of the leadership positions will give a sense of solidifying and foundation where they can then meet the major challenges ahead of them. If this isn't done right, Telstra will face this major challenge unprepared for the battle. All eyes are on Thodey as to whether he will pull off what needs to be done to deal with it.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: australia business , telstra
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