McGauchie resigns as Thodey confirmed

McGauchie resigns as Thodey confirmed

Summary: Telstra has announced that its chairman Donald McGauchie has resigned, on the same day that the company appointed its new CEO David Thodey.

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TOPICS: Telcos, Telstra
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Telstra has announced that its chairman Donald McGauchie has resigned, on the same day that the company appointed its new CEO David Thodey.

Donald McGauchie (Credit: Suzanne Tindal/ZDNet.com.au)

McGauchie will be replaced by Catherine Livingstone, who has been a director since November 2000.

McGauchie said that speculation on his tenure was distracting the business. "Telstra's strength and ongoing performance are the paramount priority... Nothing should be allowed to get in the way of David and the management team getting on with the important job ahead of them," he said in a statement.

McGauchie had reportedly recently been under pressure by David Murray, the chair of the Future Fund, to resign.

Despite this pressure, McGauchie maintained today that the board had "every reason" to be proud of what was achieved during the past five years. He recognised outgoing CEO Sol Trujillo and his management team's hard work.

He also patted himself on the back for being able to pick an internal successor to the CEO. "Every board strives to achieve a succession plan worthy of the corporation."

Before becoming a director, his replacement Livingstone was CEO of Cochlear for six years from 1994.

Livingstone has a degree in accounting and has held several finance and general management positions, mostly in the medical devices sectors. She is also a director of Macquarie Bank, Macquarie group and Worley Parsons.

She has been the chairman of the CSIRO, Goodman Fielder and was the chairman of the Australian Business Foundation.

Livingstone praised McGauchie's tenure. "Donald's was an extremely difficult job, handled with great care and professionalism."

Thodey's hotly backed rival for the CEO, the company's CFO John Stanhope, has also been given a seat on the board.

Topics: Telcos, Telstra

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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Talkback

15 comments
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  • Good

    Same comment as for when the mexican announced his resignation.

    Thanks for nothing and glad to see the back of you. It can hopefully only get better from here, not just for embattled shareholders but also for long suffering employees.
    anonymous
  • Good bloody riddens

    Bye bye McGauchie you wont be missed.
    anonymous
  • So sad - the commentary was fun

    well I guess that's the end of all the whining and whinging from this portal as Telstra will now do everything that every one wants because the 3 amigos and the Sherrif have left.
    anonymous
  • Now what?

    With Sol and the three amigos gone, who are supposed to whinge about now?

    Setting the sarcasm aside, thank's for nothing Donald. Don't let the door hit you on the arse on the way out!
    anonymous
  • Livingstone is bad news

    If Livingstone is going to perform the same tricks as she did at Goodman Fielder, then God help the poor Telstra employees.

    On the other hand, she's very likely to carve up Telstra into smaller chunks and sell them off.
    anonymous
  • Can a leopard change its spots?

    Thinking positively I suppose this is a chance for the leopard to change its spots. One of the fairest things Telstra could do right now is allow their competitors to connect ADSL2+ customers on Telstra's budget phone plan. Paying almost $30 a month for a phone line I do not make any calls from is unreasonable, especially when it never requires any maintenance.
    anonymous
  • Good Riddance to Bad Rubbish

    The outgoing CEO and chairman cat pat themselves on the back for DESTROYING Telstra's share price and leaving it exposed like never before to the possibility of losing its market advantage (by means of a company split and/or technological obsolescence).

    When you bite the hand that feeds you (i.e. two successive governments) you can only expect to get a kick in the teeth. Telstra has suffered long enough under the command of these two arrogant short-sighted buffoons.

    GOOD RIDDANCE!
    anonymous
  • As IF

    A change from Telstra....not a chance!....more screwing customers more ways to kill of competition.

    I only hope the Government keeps Telstra well away from price control with the NBN network.

    They are not to be trusted!
    anonymous
  • Good news - and about time

    The Yankee Doodle charade is finally over (they've all taken their bags of our gold back to the land of the free), and the bumpkin who appointed them has been put out to pasture.

    So what's not to like?
    anonymous
  • Good riddance

    Good riddance McGauchie.It is wrong that this goose can just walking away after runing a good company with his offsider Trujillo. The shareholders should take legal action against these incompetent boofheads.
    anonymous
  • gee - $43Bn to get rid of Sol and Donald - will it be worth it

    Another way of looking at this , it has cost the Australian tax payers $43 billion to unseat Mr McGauchie and Mr Trujillo from their positions.

    Executive golden handshakes pale into insignificance compared to this don't they :-)
    anonymous
  • zzzzz

    another pair of clowns with stuff all qualifications in the fields they'll actually be managing.. how do these clowns get these jobs?
    anonymous
  • zzzzz

    "another pair of clowns with stuff all qualifications in the fields they'll actually be managing.. how do these clowns get these jobs?"

    A lot easier than you, obviously !
    anonymous
  • There's plenty of ways to perceive the events.

    Another way of looking at it is, the government sold Telstra for $60Bn and are now building FTTP for $43Bn.

    A $17Bn profit, plus they get rid of the two you mention ;-)
    anonymous
  • IT Cost $43 Billion

    I agree it cost $43 Billion to get rid of Sol. Lets see if Thodey will sell OUT the shareholders??
    anonymous