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Financial News

Mar 2012 Financial News

TSTT CEO HANGS UP...Quits before contract expires

Mar 23, 2012

Chief executive officer of Telecommunications Services of Trinidad and Tobago (TSTT), Roberto Peon, has resigned from the majority State-owned telecoms provider.

Peon tendered his resignation, with three months contractual notice, to the TSTT board headed by former police commissioner Everald Snaggs yesterday.

His last day at the office will be June 30.

Peon held the top job at TSTT for the past five years.

He started in January 2007 with an initial three-year contract, taking over from Honduran telecom executive Carlos Espinal.

After that term ended in January 2010, his contract was renewed and would have ended in January 2013.

Company officials were quiet on Peon's resignation yesterday.

Camille Salandy, head of public relations and external affairs at TSTT, said Peon remained in a closed-door meeting up to late yesterday.

TSTT's minority partner is international telecoms giant Cable & Wireless which owns 49 per cent.

TSTT shares are vested in a holding company, the National Enterprises Ltd (NEL), which is listed on the local stock exchange.

One source close to TSTT's operations confirmed to the Express yesterday that Peon volunteered his resignation as it conflicted with his family commitments.

However, other TSTT sources said Peon was being given directives—such as the hiring of select individuals—with which he was uncomfortable.

A TSTT source said Peon was tired of working with a team that has not been approving necessary business proposals to support the operations and development of the company in mobile and broadband networks, advertising, recruitment and key resources.

Another issue, which has caused tension between Peon and the company recently, was whether bonus payments would be paid to executives.

The former TSTT board of directors had approved bonus payments of 200 per cent of salaries for executives.

The Express understands that the bonus was not calculated on how much profit the company made but was based on targets the company had set for itself.

"The CEO wanted to leave because no bonus payments were approved by the new People's Partnership board," the Express was told.

A board meeting, where the issue of bonuses is to be raised, is scheduled for March 29.

Last year, Peon had verbally offered his resignation over a rift with the company's union, the Communication Workers Union (CWU).

Peon, the Express learnt, had objected to a Voluntary Separation package to an employee so that he could be deployed to another State enterprise under the directive of a Government official.

He never followed through with officially resigning then.

Peon, a former retired BellSouth executive, had a relatively simple vision for TSTT—to make the network work, provide superior coverage and excellent customer service.

This was the strategy he had deployed when he worked at foreign cellular company BCP Telecommunications.

Under Peon's tenure the company offered two new services—Blink Vigilance and IPTV.

Profits however also declined under his stewardship. Profits moved from $384 million in 2008/2009 to $202 million in 2009/2010 and a low of $40 million for 2010/2011.

The CWU, which represents TSTT employees, has repeatedly called for Peon's resignation.

Last year the union objected to TSTT's proposed wage increase for employees.

In February, 2011, about 200 workers gathered at TSTT's Edward Street, Port of Spain, offices to deliver a petition to Peon to complain about the company's distribution of profits to staff members.

Seventy-five employees were suspended then after staff members tried to push past security guards.


Source:
By Asha Javeed
asha.javeed@trinidadexpress.com
Trinidad Express
Friday March 23, 2012

http://www.trinidadexpress.com/news/TSTT__CEO__HANGS__UP-143917226.html