StarHub CEO to retire, global search for successor starts

Singapore

LISTED telco StarHub has announced that its chief executive officer Peter Kaliaropoulos will retire on Oct 31. The company said it will immediately start a global search for its next head honcho.

Citi analysts wrote in a report that the news may raise some near-term concerns and resultant share price pressure on StarHub, although the telco's fundamentals are intact.

They noted that when the previous helmsman Tan Tong Hai quit StarHub in November 2017, the telco recorded a 4 per cent underperformance vis-a-vis the market, and a two per cent underperformance against its local telco peer over a month.

"We believe that the share price impact albeit negative will likely be mild owing to the circumstances," said the analysts.

The StarHub board will establish an interim board executive committee (Board ExCo) to provide support to the management-leadership team during the search for a new CEO and to oversee the CEO's transition into the job, said StarHub in a regulatory filing after market trading hours on Monday.

Until the new CEO is hired, Mr Kaliaropoulos will be a co-opted member on StarHub's Board ExCo.

Asked if the firm would look for a Singaporean as its next CEO, Mr Kaliaropoulos said in a last-minute convened conference call on Monday that the search will be for the best person available, although he qualified this by saying that he was not speaking on behalf of the selection committee.

The abrupt retirement of the 61-year-old Australian, who is two years into the job, comes on the back of a family member's serious health problems, which have made it necessary for him to return to Sydney.

He first joined StarHub as senior vice-president of commercial operations in 1999. He went on to take on several C-level roles in other companies in New Zealand, Australia and the Middle East, before re-joining StarHub in July 2018 as CEO.

During his tenure, he initiated a sweeping strategic transformation programme to accelerate the telco's digital evolution, improve customers' experience, optimise efficiencies, redefine and ignite a cultural transformation for staff, and identify growth opportunities, the telco said in its statement.

Among the many initiatives were the investment in Malaysia-based Strateq (digital services) and securing a 5G licence via a partnership, noted StarHub.

Terry Clontz, StarHub's chairman, said in the statement: "More importantly, Peter built a formidable executive leadership team which is a cohesive, united group of seasoned professionals with the right passion and focus to continue our transformation journey to improve both our customers' and employees' experiences with our brand during these challenging times."

The price of the counter was up a cent to S$1.29 on Monday when the market closed.