Telstra chairman John Mullen says he will miss the fascinating role

Having orchestrated Andy Penn’s succession, Telstra chairman John Mullen says his own departure is, sadly, the next item on the board’s agenda.

Telstra Chairman John Mullen addresses the floor during Telstra's annual general meeting. Picture: AAP Image/James Ross

Telstra chairman John Mullen says his own departure is the next item on the board’s agenda, after it successfully orchestrated the exit and succession of long-serving chief executive Andy Penn, who left one of corporate Australia’s most demanding – and highest paid – roles this month.

Reflecting on his tenure in an interview with The Weekend Australian, Mr Mullen – a veteran logistics executive – said he would be leaving Telstra ‘sooner rather than later’, and probably in the next six to 12 months – given his final key task was to replace Mr Penn.

“I’d like to go on forever because it’s a fascinating company,” Mr Mullen said. “But my job was to see this succession in place, which has gone really well, and then clearly my own tenure is the next thing to discuss and agree with the board.

“It’s more likely to be sooner rather than later, unfortunately, but that is the right decision and it’s my job to make sure now that the board has a strong line-up of candidates to follow on from me as chairman, and make sure I do that during the course of the next six to 12 months.”

In a wide-ranging interview with The Weekend Australian Magazine, Mr Penn reveals his next steps in what he describes as his “third act”, following 20 years leading insurance giant AXA and almost a decade in charge of Australia’s largest telco during which he radically transformed the company and slashed its number of mobile plans and headcount.

Andrew Penn, outgoing Telstra CEO, hands down the Telstra financial results for the 2021-22 financial year at the company's Melbourne headquarters. Picture: NCA NewsWire / Andrew Henshaw

Telstra’s next board meeting in October is likely to see fresh blood added to its director ranks.

Due to a quirk in Telstra’s regulations, the company’s chairman needs to be an Australian citizen, ruling out several board members including international telecommunications veterans Niek Jan van Damme and Roy Chestnutt. The majority of independent board members must also be Australian citizens.

New board appointments will also need to be made to fill seats recently made vacant by Margie Seale and Peter Hearl, while October’s board meeting will be the last for long-time director Nora Scheinkestel.

The board’s decision to appoint Vicki Brady, who was Telstra’s chief financial officer, to the CEO role won near-unanimous praise across telecommunications and business circles. She became Telstra’s first female chief executive on September 1. However, the selection process drew criticism from some Telstra executives, who complained privately that they did not have the same opportunity to present to the board as had been the case in the past.

Telstra incoming CEO Vicki Brady. Source: Supplied.

Mr Mullen revealed that over a six-month process the Telstra board interviewed two internal candidates, including Ms Brady, at length, as well as multiple external candidates from overseas.

“We interviewed some very impressive people from around the world,” Mr Mullen said. “The two internal candidates both had ample time to present, both one-on-one and in a group format.

“Both are very talented individuals. I’ve been involved with lots of these processes over the years and the fact no one was even aware of it for six months is a testament to everybody involved and how smoothly it went. The candidates who we thought were appropriate were fully involved.”

Mr Mullen said Mr Penn’s ­impressive telecommunications career had not been recognised, particularly given the destruction to Telstra’s profits wrought by the NBN, which helped sink the company’s share price.

“Certainly when he started, unfortunately there was a bit of a tidal wave against him,” he said.

“We haven’t personally agreed on everything but we’ve had a real environment of mutual respect and transparency. He’s always been completely open and I’ve tried to be the same back. There’s no secret that when he started, because of those headwinds that he inherited and were not of his making, there was a lot of negative press from investors and media.

“We supported him strongly through that because we believed he was doing the right thing, and fortunately history has shown he was doing the right thing.”

Originally published as Telstra chairman John Mullen says he will miss the fascinating role