Mr John Walter, tapped nine months ago to become chief executive of AT&T Corporation, has resigned abruptly after the board of directors declined to give him the promised promotion, the company has said.
Telecom Eireann is linked to AT&T through its shareholders Telia and KPN, which are part of the Unisource alliance, which is linked to AT&T.
AT&T, which is largest long-distance company in the US, said its board voted not to promote Mr Walter to chief executive officer, succeeding Mr Robert Allen. When he was named president last October, some industry officials wondered whether Mr Walter, former chairman of printer R.R. Donnelley & Sons, would be able to lead AT&T effectively in the fast-changing telecommunications market.
Mr Walter (50) joined AT&T in November and was expected to succeed Mr Allen in January 1998. The resignation came after the board decided it was not ready to name him chief executive officer on the schedule originally discussed, the company said.
The boardroom coup follows a year of management turmoil that reflects the larger troubles at the company, analysts said. AT&T is losing customers to competitors in the long-distance business and needs to make major investments in new markets such as local phone service, as regulators seek to open the industry to wider competition. - (Reuter)
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