REG - Telstra Corp. Ld - Telstra announces CEO retirement and succession

TelstraAnnouncement

30/03/2022 07:00

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RNS Number : 4748G  Telstra Corporation Ld  30 March 2022

 

 30 March 2022

                Office of the Company Secretary

                Level 41

242 Exhibition Street
 RNS
MELBOURNE VIC 3000

AUSTRALIA

                General Enquiries        03 8647 4838

                companysecretary@team.telstra.com (mailto:companysecretary@team.telstra.com)

                Investor Relations

                investor.relations@team.telstra.com

 
 
ELECTRONIC LODGEMENT

 

Dear Sir or Madam

Telstra announces CEO retirement and succession

In accordance with the Listing Rules, I attach a market release, authorised
for lodgement by the Chairman, for release to the market.

 

Yours faithfully

Sue Laver

Company Secretary

 

 

MARKET RELEASE

 

Telstra announces CEO retirement and succession

 

30 March 2022 - Vicki Brady will be the new Chief Executive Officer of Telstra
replacing Andrew Penn who has today announced his intention to retire after
serving more than seven years in the role.

 

Vicki who is currently Telstra's Chief Financial Officer will officially take
over as CEO on 1 September 2022 and will work with Andy over the coming months
to ensure a smooth transition.

 

Telstra Chairman, John Mullen said Andy who joined Telstra as CFO in 2012 and
had been CEO since May 2015, would leave a positive and enduring legacy for
the transformation he has led during his time as CEO.

 

"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," Mr Mullen said.

 

"During his time as CEO, Andy has driven a focus on digitisation underpinned
by a commitment to simplifying our products and services for our customers and
employees. He has also maintained our leadership in networks, including
recently through our investment to lead on 5G.

 

"Delivery of the T22 strategy has seen Telstra return to underlying growth,
achieve significant customer experience improvements, reduce costs by over
$2.5b and reach high performing employee engagement levels with over 17,000
people now working in agile teams across Telstra.

 

"In recent years, not only has Andy ensured the successful delivery of our T22
commitments he has provided leadership at what has truly been an extraordinary
time as we have navigated both as a company and a nation through the
challenges of the pandemic.

 

"While in his role Andy made important contributions to Australian society
including through his role as a Male Champion of Change advocating for
diversity in the workplace, as Chair of the Australian Governments Industry
Advisory Committee on Cyber Security and in the Arts where he received the
2020 Creative Partnerships Australia's Business Leadership Award for his
exceptional contribution to Australia's cultural life."

 

Mr Mullen said during his time as CEO, Andy had also developed a strong team
to ensure the ongoing successful leadership of the company.

 

"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," said Mr Mullen.

 

"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."

 

Vicki joined Telstra in 2016 and has held the role of Group Executive,
Consumer and Small Business in addition to her current role of CFO and Group
Executive responsible for Strategy, which she was appointed to on 1 July
2019.   She is an experienced executive leader, who has built a strong and
deep understanding of telecommunications and technology on top of her
financial expertise. She has a Bachelor
of Commerce from the Australia National University, a Masters from Stanford University Graduate School of
 Business, is a member of the Institute of Chartered Accountants ANZ and
is a Graduate of the Australian Institute of Company Directors.

 

Vicki will be based in Sydney and a summary of her
biography, remuneration and material terms of
 her contract of employment as CEO are attached.

 ENDS 

Biography - Vicki Brady

Vicki has held the role of Chief Financial Officer and Group Executive,
Strategy & Finance since 1 July 2019.

 

As CFO and GE, Strategy & Finance, Vicki Brady guides the company's
financial performance and reporting, leads the development of and progress
against its corporate strategy, and oversees its risk and internal audit
capabilities, with the aim of delivering shareholder value over the long term.

 

Vicki joined Telstra in 2016 and prior to her appointment as CFO and GE,
Strategy & Finance, held the role of Group Executive, Consumer & Small
Business. In this role she led a business unit with $14.6 billion of income
and was one of the architects of the T22 strategy. Prior to this Vicki was
Group Managing Director, Sales & Service and Group Managing Director,
Consumer, with responsibility for the implementation of a customer-led
strategy and operating plan for Telstra's contact centres, stores, digital
channels and business centres, lifting customer experience, commercial
performance and driving cultural change. She also has extensive executive
leadership experience in telecommunications and services companies in
Australia and internationally, having worked for organisations including
Optus, SingTel and KPMG.

 

Vicki has a Bachelor of Commerce from the Australian National University and a
Master of Science in Management from the Stanford University Graduate School
of Business. She is a member of the institute of Chartered Accountants ANZ and
is a Graduate of the Australian Institute of Company Directors.

 

Summary of material terms of Employment Agreement dated 30 March 2022

 Name                       Vicki Brady
 Position                   Chief Executive Officer
 Commencement date as CEO   1 September 2022.  It is not a fixed term contract.
 Fixed Remuneration         AUD 2,390,000 per annum inclusive of superannuation contributions.
 Variable Remuneration      Participation in Telstra's annual Executive Variable Remuneration Plan (EVP)
                            as determined by the Board from time    to time.

                            EVP incentive opportunity at target is 200% of Fixed Remuneration being AUD
                            2,390,000 per annum and payable if performance targets are achieved but  not
                            exceeded. The maximum EVP opportunity is 300% of Fixed Remuneration if stretch
                            targets are met.

                            Telstra's current EVP Plan rules provide for 25% of a senior executive's
                            actual EVP payment to be paid as cash, 35% to be provided as Restricted Shares
                            and 40% to be provided as Performance Rights.

                            ·    One quarter of the Restricted Shares are eligible to vest each year
                            over four years, subject to a continuing employment condition. During the
                            restriction period, senior executives are entitled to earn dividends on, and
                            vote on, their Restricted Shares.

                            ·    Vesting of Performance Rights is subject to a 5-year Relative Total
                            Shareholder Return (RTSR) performance condition and a continuing employment
                            condition.

                            As a continuing employee, Ms. Brady's existing grants of Restricted Shares and
                            Performance  Rights under Telstra's current EVP plans will remain on foot,
                            subject to     satisfaction of the relevant restriction periods and
                            performance conditions. The terms of these existing grants are summarised in
                            Telstra's 2021 Annual Report.

                            Unvested grants of equity may be forfeited if employment ceases other than for
                            a Permitted Reason or a clawback (malus) event occurs.

                            Any future grants of Restricted Shares and Performance Rights to Ms. Brady
                            under the EVP plan will be disclosed in future Annual Reports, and grants will
                            be subject  to shareholder approval where required in accordance with
                            applicable          law.
 Notice Period              6 months by Telstra.

                            6 months by CEO.

                            Nil in the case of serious misconduct.
 Termination payment        6 months' Fixed Remuneration if Telstra gives notice.

                            Treatment of any EVP benefits on termination will be  determined by each
                            year's plan terms.

                            No payment will be made on cessation of employment in excess of the amount
                            lawfully payable under Part 2D.2 of the Corporations Act 2001 without
                            shareholder approval.
 Post-employment restraint  A 12-month restraint provision applies.

 

 

Telstra media contact: Matt Smithson, Media Manager

M: +61 439 876 981

E: media@team.telstra.com (mailto:media@team.telstra.com)

Reference number: 032/2022

 

Telstra investor contact: Nathan Burley, Investor Relations

T: +61 457 529 334

E: investor.relations@team.telstra.com
(mailto:investor.relations@team.telstra.com)

 

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