Telstra share price on watch amid shock CEO exit

Telstra's CEO is leaving…

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Key points

  • Telstra has announced the impending retirement of its CEO Andy Penn
  • Penn is leaving after seven years in the top job
  • He will be replaced by the company's CFO Vicki Brady

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch closely on Wednesday.

This follows the release of a bombshell announcement out of the telco giant this morning.

Why is the Telstra share price?

All eyes will be on the Telstra share price this morning after the company announced the retirement of its chief executive officer (CEO) Andrew Penn.

According to the release, Penn has announced his intention to retire on 31 August after serving more than seven years in the role.

Telstra has been quick to find a replacement and has revealed that the company's current chief financial officer (CFO) Vicki Brady will officially take over as CEO on 1 September. She will work with Penn over the coming months to ensure that the transition is a smooth one.

This is the same route that Penn took to the top job. He joined Telstra as CFO in 2012 before being promoted to the CEO role in 2015.

Telstra's chairman John Mullen believes Penn will be leaving a positive and enduring legacy for the transformation he has led during his time as CEO.

He commented: "Andy has led Telstra during a period of significant change and will be known for his courage in setting a bold ambition through the T22 strategy to deliver a transformed experience for customers, shareholders and employees. There is no doubt the strategy has delivered beyond expectations and has laid the foundations for Telstra's recently announced T25 strategy and a renewed focus on growth and innovation."

The new CEO

Mullen notes that Penn developed a strong team to ensure the ongoing successful leadership of the company and believes Telstra is in safe hands with Vicki Brady.

He explained: "The greatest testament to this is the ability to announce an internal successor to the role of CEO and I am thrilled to be able to announce Vicki in the role today."

"Having started her career with KPMG, Vicki subsequently worked in a range of finance, commercial and strategy roles before moving into broader business leadership positions. She has made a significant contribution to Telstra including her work in developing our new go to market plans as part of the T22 strategy. She has played a key leadership role in the development of Telstra's T25 strategy and is well placed to lead the company through its next phase. She could not be more qualified to take over the reins to deliver on our T25 commitments."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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