Stanhope announces Telstra retirement

Telstra's long-standing chief financial officer John Stanhope will retire at the end of the year, following the signing of one of the largest agreements in the company's history.

Stanhope, who joined the company in 1967, held the reins of the telco's finances since 1995 and oversaw numerous landmarks including Telstra's privatisation, and last week's signing of an $11 billion agreement between Telstra, NBN Co and the Federal Government.

He will step down from the Telstra board when he retires on December 30.

"Telstra has wonderful people and assets and I am confident that the company's future is extremely bright," Stanhope said in an ASX statement issued by Telstra this morning.

"I look forward to continuing to play a significant role in the coming months as we seek shareholder approval for Telstra's participation in the National Broadband Network."

One of Stanhope's last major milestones before leaving would be to convince the company's 1.4 million shareholders to support the agreement with NBN Co at the next annual general meeting on October 18 this year.

Despite the Telstra board's endorsement of the deal, shareholder reaction has been wavering, with share prices dropping by nearly five percent in the days following its announcement.

"John's contribution to the company for more than 40 years has been enormous," Telstra chief executive David Thodey said.

The telco has worked to reshape its image as a company over the past year in the face of declining PSTN revenues. In January, an executive reorganisation led to the loss of chief operating officer MIchael Rocca and public policy director John Quilty.

The company was yet to reveal plans for Stanhope's replacement.