“Definitely no conspiracy theories,” declared Telstra chairman John Mullen when asked why the telco’s long-standing chief executive Andy Penn was leaving on the day after the federal budget.
You’d be forgiven for thinking otherwise. Penn’s retirement from the company he has run for nearly seven years was certainly not unexpected, but the industry was baffled by the decision to do it on March 30. The budget haze is perfect for burying big news, after all.
More peculiar? The 2am dial-in from an unshaven Mullen, who opted for a collared blue shirt instead of his usual suit attire on a call from Europe, where he was away on holiday.
Penn and Mullen both tried to dampen any speculation there was more to it. Penn’s 59th birthday, which happens to be March 30, was provided as the reason for the timing. And what better way to celebrate the passing of another year?
Those close to Telstra believe the reason is sound. But we are sure there’ll be questions when Penn fronts his executives at his regular leadership meeting from Melbourne today.
There were also eyebrows raised about Mullen’s “process” for selecting Penn’s replacement, chief financial officer Vicki Brady.
An unshaven Telstra chairman John Mullen had to dial in at 2am for the retirement of CEO Andy Penn.Credit: John Shakespeare
“The process has been very thorough and well planned,” Mullen said. “Once we knew that Andy was contemplating this decision we ... extensively canvassed domestic candidates as well as international.”
The problem is nobody in the sector seemed to know who else Mullen actually “canvassed”. We hear several Telstra executives who thought they would have a decent chance never got the call-up.
But someone was on the hunt. The Telstra board appointed global executive search firm Russell Reynolds to find Penn’s replacement. It appears they kept their word and remained tight-lipped until the announcement went out, less than 24 hours after Brady signed her contract.
LIBS SEE RED
The Liberals’ endless bickering over preselections may seem a bit inside baseball, but those on the field are genuinely fired up. One irate branch president, CBD favourite George Szabo, has even threatened to order his Roseville troops to boycott the upcoming campaign.
His recent dispatch to members lamented “factional heavyweights” were wreaking havoc in the hallowed democratic confines of the NSW Liberal Party, and if things continued down this “illegal and immoral track”, he would instruct them to “provide no further assistance to the Liberal Party (financial, manpower or otherwise)” until they changed.
The missive was attached to an invitation for the Roseville branch’s next big shindig – a dinner and discussion with none other than Sky News host Rowan Dean, climate change sceptic Ian Plimer and visiting fellow traveller Benny Peiser. A robust debate no doubt.
Lest they be denied the Roseville branch’s riches, the Libs will bring in a decent haul from Friday’s traditional post-budget fundraising lunch, where seats start at $880 for the privilege of hearing Prime Minister Scott Morrison spruik the government’s wares.
A few Liberals were perplexed by the invitation, which gave the location as simply “Sydney CBD”. We’re told the festivities are at the Liberals’ preferred city hangout, the Sofitel Wentworth.
SONY DRIES OUT
Staff returning to Sony Music’s East Sydney headquarters post-COVID copped a bit of surprise – and we’re not just talking about the noticeable absence of their ousted ex-CEO Denis Handlin.
The record label’s Hargrave Street bunker underwent a renovation while staff were working from home. Handlin’s wing of the building was practically demolished and turned from a dark dungeon into a bright open space.
But the most startling difference was the office drinking dens. Numerous bars – including the notorious Sky Bar where staff were encouraged (read: expected) to keep themselves lubricated – have been removed.
Instead, open-plan kitchens now lend themselves to cups of tea rather than shots of tequila. Given many of the complaints about Sony’s toxic culture centred around drinking and bad behaviour, it’s no surprise the label’s US head office wanted a change.
But never fear, the joint hasn’t gone completely teetotal. The iconic upstairs music room, where many an artist has played for dignitaries, still has a small bar fridge and a beverage collection that would have barely covered a lunch in the old days.
At least the place will be presentable when the Americans finally arrive to pick a new provincial CEO. It’s been more than nine months since Handlin was booted.
WARNE’S AFTER PARTY
Shane Warne’s friends and family were the picture of unity at the cricket legend’s massive state memorial service at the MCG on Wednesday but when it came to raising a glass to the great man after the ceremony, three distinct tribes emerged.
The spinner’s parents Keith and Bridgett retired to the Pullman on the Park, a short walk from the G, accompanied by the many of the mature-aged members of the VIP crowd.
Most of the 30-to-50-somethings headed to Crown casino and Southbank with Warne teammate Adam Gilchrist, West Indies great Brian Lara and ex-Manchester United striker Dwight Yorke.
Warne’s children Brook, Jackson and Summer led about 100 friends and family, mostly aged 18 to 25, to a party on the roof of the Emerson in Prahran.
Hawthorn premiership defender Campbell Brown, who’s a lot more than 25, stood out from the crowd, as did Geelong legend and veteran TV broadcaster Billy Brownless, who is older still.