Gladys Berejiklian positions herself to replace Kelly Bayer Rosmarin as Optus CEO
The search for the next Optus chief has begun with former NSW premier Gladys Berejiklian positioning herself during the outage. Here are some of the other top contenders.
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A global search for the next Optus chief executive has begun after Kelly Bayer Rosmarin resigned with immediate effect, with a successor unlikely to be named for at least six months.
Ms Bayer Rosmarin quit the role she has held for the past 3½ years following the telco’s massive outage earlier this month that left more than 10 million Australians cut off from phone and internet services, sparking widespread disruption. More than 220 Australians could not dial triple-0 emergency services.
It was the second reputational disaster on Ms Bayer Rosmarin’s watch after last year’s cyber attack, where her response – like the outage – was widely criticised.
Ms Bayer Rosmarin said it had been an honour to serve as Optus CEO. But she said it was an appropriate time to step down after fronting a bruising Senate inquiry on Friday.
Optus’s owner, Singtel – which is controlled by the Singapore government – announced Ms Bayer Rosmarin’s departure in a statement to the Singapore stock exchange.
“On Friday I had the opportunity to appear before the Senate to expand on the cause of the network outage and how Optus recovered and responded. I was also able to communicate Optus’s commitment to restore trust and continue to serve customers,” Ms Bayer Rosmarin said.
“Having now had time for some personal reflection, I have come to the decision that my resignation is in the best interest of Optus moving forward.”
Former NSW Premier Gladys Berejiklian is understood to have flagged her interest in taking the top job after the telco recruited her to manage its business customers last year. But Singtel is understood to prefer a more conservative option and a proven telco executive.
A more likely scenario would be for Singtel to parachute in one of its own from Singapore, just as it did when it appointed Allan Lew to run Optus, who during his five-year tenure stabilised earnings before handing the reins to Bayer Rosmarin.
While Berejiklian was considered a star recruit at Optus, a handicap to her ascendancy at the telco is the Independent Commission Against Corruption’s finding that she engaged in serious corrupt conduct while in office – a finding which she is appealing.
Berejiklian also appeared to play politics rather than display corporate leadership during the outage. Andrew Sheridan, Optus’s vice-president regulatory and public affairs, reports to Berejiklian. But she was absent from any public and media appearances until late the next afternoon after the outage.
Normally in the corporate crisis playbook, media duties are initially delegated to a spokesperson, such as another executive, with Berejiklian the obvious choice given her experience in crisis management. The chief executive does not step in until either it is fully understood what is going on, the issue has been resolved, or a scandal has blown up so big that they need to take charge.
But Bayer Rosmarin became the face of the outage – a role she was roundly criticised for. And it was too little, too late. She did not face the media until seven hours after the network collapsed, a decision that left Communications Minister Michelle Rowland filling the void, damaging Optus’s relationship with Canberra.
Singtel chief executive Yuen Kuan Moon said Optus’s “priority is about setting on a path of renewal for the benefit of the community and customers”. On this score, appointing Berejiklian could be viewed as regressive.
“Optus is an integral part of our group’s business,” Yuen said. “We view the events in recent weeks very seriously. We fully recognise the importance of Optus’s role in providing connectivity services to the community and the importance of network resiliency and security. That is a top priority in all markets where our companies operate in.”
Other contenders for CEO include chief financial officer Michael Venter, who has been appointed interim CEO. But he is viewed more as a bench-warmer than a permanent replacement.
Another internal candidate is former Optus business managing director Peter Kaliaropoulos, who has been appointed to the new role of chief operating officer at the telco. Yuen described Kaliaropoulos as a “veteran telecommunications executive”.
Since leaving Optus in 2005, Kaliaropoulos has been chief executive of Singapore telco StarHub and has been consulting to businesses in the country since July last year.
If Singtel doesn’t appoint from within its own ranks, there are other external candidates in Australia.
At bigger rival Telstra there is chief financial officer Michael Ackland and consumer bossBrad Whitcomb. But Ackland is key to Telstra’s T25 strategy and as such chief executive Vicki Brady would be keen to retain him.
Whitcomb, meanwhile, only started at Telstra in January after serving eight years at NBN Co. While a quick departure is not unprecedented, he is viewed as unlikely to leave Telstra so soon.
Former NBN chief executive Bill Morrow is another prospect to helm Optus. After leaving NBN in late 2018, Morrow has served as chief executive of US multichannel video programming distributor DirectTV – but whether he wants to leave sunny California for stormy Optus is a different matter.
Yuen said Ms Bayer Rosmarin had helmed Optus during a “challenging period”. He said Singtel recognised that Optus needed to regain customer trust.
“Optus appointed Kelly at the beginning of the pandemic, and we acknowledge her leadership, commitment and hard work throughout what has been a challenging period and thank her for her dedication and service to Optus,” he said.
“Kelly has always led with integrity and had all stakeholders’ best interests at heart. We understand her decision and wish her the very best in her future endeavours.
“We recognise the need for Optus to regain customer trust and confidence as the team works through the impact and consequences of the recent outage and continues to improve. Optus’s priority is about setting on a path of renewal for the benefit of the community and customers.”
Originally published as Gladys Berejiklian positions herself to replace Kelly Bayer Rosmarin as Optus CEO
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