KPN goes in-house to resolve CEO soap opera

Having bailed on its new CEO within days of announcing her, Dutch operator KPN has taken the safe option with its next pick.

Current COO Joost Farwerck (pictured) has been promoted to CEO with immediate effect, following the decision not to follow through with the appointment of Dominique Leroy, who is being investigated for insider trading. Farwerck is effectively caretaker CEO for now, but KPN has announced its intention to formalize the gig on 1 December, presuming there are no further dramas.

Picking an internal lifer who has been on the management board since 2013 largely eliminates the possibility of nasty surprises or skeletons in the closet, which must surely be a high priority after the Leroy debacle. Having passed over Farwerck in favour of an external appointment so recently, the conversation must have been a bit awkward, but fair play to him for not sulking.

“With Joost assuming the role of CEO, the supervisory board is pleased to appoint an experienced telecommunications professional,” said the presumably relieved KPN Chairman, Duco Sickinghe. “He has been a member of the board since April 2013 and is part of the leadership team that shaped the 2019-2021 strategy. Joost knows the company inside out and the environment the company is operating in. With Joost as CEO, the supervisory board is convinced that we will make good progress on the further development and execution of KPN’s strategy.”

“It is with pleasure that I assume the role of CEO of this great company which focuses on offering high speed connections to consumers, businesses and Dutch society,” said Farwerck. “KPN is a company with a realistic strategy in place to perform in the competitive Dutch market. My primary focus will be to deliver on that strategy and explore how we can accelerate the execution even more to deliver organic sustainable growth. We have a great team and a lot of dedicated people in the company. I am eager to work with all of them to execute on that strategy.”

Farwerck will be paid €875kpa, which isn’t bad, but is still less than the €935k Leroy was due to get. Given the very strong negotiating position he must have been in following the Leroy business, this doesn’t say much for his negotiating skills. Maybe he’ll get a bit more in December.