Telstra chief executive to step down early

SYDNEY - Telstra Corp Ltd today said chief executive Ziggy Switkowski would step down in 2005, two years short of the end of his contract.

The announcement was made by Telstra chairman Donald McGauchie and was backed by the board.

"Following discussions between Telstra chief executive officer Dr Ziggy Switkowski and the board, the board and Dr Switkowski have agreed that Dr Switkowski will step down as chief executive officer on 1 July 2005 or earlier if a new chief executive is appointed before that date," Mr McGauchie said in a statement.

The board will immediately begin a wide-ranging search to find a replacement.

Mr McGauchie said that Dr Switkowski had "successfully led the company through a particularly complex and demanding period in the telecommunications industry".

"He has developed an outstanding executive team and Telstra is now well positioned as a competitive, full-service, integrated telecommunications company that is committed to delivering for its shareholders and the nation," he said.

Dr Switkowski said he looked forward to thanking the staff of Telstra and in particular his senior leadership team for the privilege of leading them through a very "rewarding and challenging" chapter in the history of Telstra and the telecommunications industry.

Dr Switkowski said that the company was performing well and he was confident that he would hand over a company in very sound shape to his successor.

Mr McGauchie confirmed that the board remained committed to the company's current strategy and capital management program announced in June this year.

The board would continue to work over the next six months with Dr Switkowski to implement the agreed strategy.

Dr Switkowski will receive an agreement payment of A$2.092 million ($2.31 million), as well as fixed remuneration in lieu of notice if he steps down before July 1, 2005.

"In addition to these payments, Dr Switkowski will be paid accrued leave and incentive payments as at the date he steps down in accordance with the terms of his contract," Mr McGauchie said.

- AAP