KEY POINTS:
Telecom chairman Wayne Boyd has confronted the challenge to his board head-on by appointing advertising industry heavyweight Kevin Roberts.
The New York-based chief executive of Saatchi & Saatchi worldwide has replaced long-serving Telecom director Patsy Reddy, who retires after 10 years on the board.
By stepping directly in to Reddy's position, Roberts must stand for re-election at the company's annual general meeting on October 2.
That will pitch him into a contest with rogue candidates Mark Tume and Mark Cross, who were nominated by US hedge fund Elliot International this month.
Boyd said yesterday that Roberts had been appointed to boost the board's expertise around "marketing, branding and customer satisfaction".
"Kevin Roberts is one of the world's most innovative and influential thinkers about corporate branding, marketing and customer satisfaction," Boyd said.
The strength of the board's recommendation will almost certainly ensure Roberts stays on the board. His presence will liven up what is already expected to be an extremely interesting meeting for New Zealand's largest listed company.
Roberts has a long history of corporate leadership in management roles with Pepsi-Cola, Lion Nathan and Saatchi & Saatchi. He has served as director on the board of Lion Nathan.
He was also brought on to the board of the New Zealand Rugby Union in 1999 - before the All Blacks' ill-fated World Cup campaign.
One senior fund manager described the appointment as a good one because of the perception that Telecom was a "broken brand". Another was less enthusiastic, suggesting there was some cynicism in the market about Roberts' "guru" status. But he acknowledged that many would see him as a strong addition from a marketing point of view.
Roberts has always divided opinion - even among his advertising industry peers - but some argue this has been a self-conscious ploy, a device used regularly used by advertisers to market products.
He has a high profile on the world stage for his books about branding. Love Marks, released in 2004, is about emotional attachments to brands and Sisomo, released in 2005, says the future of advertising is in using a widening array of screens.
But despite the scale of his position in the global advertising industry, Roberts has always remained a passionate champion of New Zealand Inc, setting up a dedicated website to promote all things Kiwi in the wider world.
Boyd also hinted yesterday that there may be room on the Telecom board for more directors. The board still needed expertise in media, online and entrepreneurship, he said. But he declined to comment on whether that meant there was room for Tume and Cross.
In a move widely perceived as a challenge to the Telecom board, the pair were nominated by aggressive hedge fund Elliot International, which holds close to a 3 per cent stake in Telecom. It wants to see Telecom more radically restructured into two separate businesses.
The pair say they will retain their independence.
Tume, well known in Wellington business circles, has roles on state agencies and has significant experience in the infrastructure sector. He is a director of New Zealand Refining Company and Ngai Tahu Holdings Corporation.
Cross is a relative unknown. He has 20 years' experience in the financial sector in New Zealand and overseas. Most recently he was managing director and co-head of the European natural resources mergers and acquisitions team for Deutsche Bank. Telecom shares closed up 2c yesterday at $3.26.
CAREER OF THE MAN THEY CALL KR
Kevin Roberts, chief executive
Saatchi & Saatchi Worldwide
Age: 59.
Personal: Married to Rowena with four adult children.
Career:
* 1969-72: Mary Quant Cosmetics, brand manager, Britain.
* 1972-75: Gillette, international products manager, Europe.
* 1975-82: Procter & Gamble, group marketing manager.
* 1982-86: Pepsi Cola, vice-president, Middle East.
* 1987-89: Pepsi , president and chief executive Canada.
* 1989-96: Lion Nathan, director and chief operating officer.
* 1997: Saatchi & Saatchi Worldwide chief executive.
Also known for:
* His role on the NZ Rugby Football Union board when he came under fire after the All Blacks World Cup disaster (the 1999 one).
* Being at the centre of a political furore when M&C Saatchi won a Tourism Board account off its rivals after an infamous dinner with Prime Minister Jenny Shipley in 1998.
