Summary Box: KPN CFO quits on corporate governance

AP News
Posted: Jan 03, 2012 11:27 AM
Summary Box: KPN CFO quits on corporate governance

HANGING IT UP: Carla Smits, the chief financial officer of the largest telecommunications company in the Netherlands, Royal KPN NV, will quit in April because she doesn't approve of its new governance structure.

COMMUNICATIONS PROBLEM: The company said Smits had "come to the conclusion she does not agree with the internal governance of the company" after changes announced in May. The main change to KPN's governance has been the establishment of an "executive committee" of 12 top managers _ essentially an expanded version of the typical Dutch management board.

WRONG NUMBERS: The new structure was the result of an emergency strategy review after a dismal financial performance in the first quarter of 2011. KPN's earnings fell as customers with smartphones began switching en masse to mobile Internet services such as Skype rather than KPN's more expensive text and voice offerings.