I think Telstra chairman John Muller is worse than CEO Penn....

I think Telstra chairman John Muller is worse than CEO Penn. Both have to go.

They both make excuses and blame the NBN and tough industry conditions. A CEO and chairman should never make any excuse and never blame. Should instead find smart solutions and ways around problems, solve problems. Not keep repeating how tough and difficult the conditions are and will be.

That is such a negative and useless thing. If there are tough conditions and problems, you are there and paid to find solutions for those exact things. Not to continually talk about the challenges and tough conditions and to take the company and its share price to 8 year lows.

Here is what I think happened during the end of Thodey's term and at the time when a replacement was needed.

RE-ENACTMENT:

Penn: Thodey, I am bored being in finance and dealing with accounting matters, I want a change in career. I want to get into running the technical side of Telstra, I want to get into the technology side. I want your job and want you to help me get it.

Thodey: Look Penn, I don't know if you have the right background for this. After all, you are only an accountant with no technology or telecoms experience. You are not the right man for this. What we really need is someone from overseas with vision, charisma, balls and extensive telecoms experience such as Sol Trujillo.

Penn: But I really want it. I can do my best. I can learn as I go. I think I have what you listed.

Thodey: No Penn, I don't think the shareholders would be happy if they knew it was just for you and for your career development.

Penn: Look Thodey, I promise I will do my best. Let's just try to get me in. If we can pull this off and you get me in, I will be ok.

Thodey: Maybe I can convince the shareholders and others you are the right one for the job. Maybe we could pull it off. By the time the shareholders and share price notices, it will be 2 years and by then, I will be long gone. Ok, I will do it.

Penn: Yeah, look, just help me out and get this job for me Thodey. I will shout you a few beers tonight. It will be a great career change for me and I will be very excited. I need a change. I will be grateful if you can roger this through.

Thodey: Ok, beers sounds good. I will do my best, I think I can pull some strings and get you in.

Penn: Thanks Thodey.

I'm pretty sure this is what took place in the background in 2015.

Result of Penn as CEO 2015-2018:

1. In 2016, Telstra says it has surplus capital that it wants to return to share holders. Proceeds of 2.1 billion from the sale of Autohome used to do a share buy back at $4.43.
2. Dividends of 3.8 billion returned to shareholders in 2016 because Telstra says it has strong cash flow and things are good.
3. August 2017, only 12 months later, cash flow and things are not that good and Telstra cuts dividend from 31c to 22c with no prior warning of magnitude of the cut. The news shocks the market and the share price plunges from a $4.33 close the prior day to $3.87 the next day, an 11% drop in one day.
4. 12 months later in 2018, share price gets so weak with CEO Penn and John Muller at the wheel that it revisits 2010 lows at $2.60, a whopping 61% drop in an ASX top 20 company. An 8 year low and fall from $6.74.
5. TLS share price lags ASX 200 stock index by 55% (chart attached).

And these clowns continue to mention 3 billion earnings hole, continue to comment on how tough conditions are and make negative comments and have the nerve to criticize share holders for voting against salaries.

These clowns Muller and Penn need to go ASAP.

You will find the share price will do a lot better once they both go and this circus finally ends.