NBN Co CEO moves to Optus | Dirt Report

Stephen Rue is moving from NBN Co to Optus

NBN Co CEO Stephen Rue has been appointed chief executive of Optus. He is expected to leave NBN Co and begin the new role in November 2024.

The appointment follows the resignation of former Optus chief executive Kelly Bayer Rosmarin in November. The video notes that her departure followed criticism of how she handled a national network outage and earlier cyber attacks.

Reporting referenced in the video says Rue was selected because of his experience working with governments, the telecommunications industry and cyber security. These areas are relevant to Optus as it manages a large communications network and operates in a heavily regulated sector.

A change after around six years at NBN Co

Rue has been at NBN Co for approximately six years. During that period, he led the organisation responsible for delivering and operating the National Broadband Network, a major national infrastructure project.

The video describes the leadership change as significant for the telecommunications industry. It also raises the question of whether Rue’s departure represents a loss for NBN Co, or whether the organisation is ready for a change in leadership after several years under the same chief executive.

The video also refers to reporting that Rue’s NBN Co remuneration exceeded $3 million. It contrasts that figure with the salary of Prime Minister Anthony Albanese, stated in the video as $587,000 per year. The discussion suggests Optus has offered Rue a remuneration package that makes the move attractive, although the precise terms of his new package are not given.

Who could replace Rue at NBN Co?

The video identifies Kate McKenzie as a possible candidate to become the next NBN Co chief executive. This is presented as a prediction, not as an announced appointment.

McKenzie is an NBN Co non-executive director and chair. Her previous roles include chief executive of Chorus, the New Zealand telecommunications company responsible for rolling out the country’s fibre network, while retail providers resell services over that network.

According to the NBN Co biography quoted in the video, McKenzie has also held senior roles at Telstra, including chief operating officer, and has worked in public sector leadership roles. Her other board and executive experience includes organisations such as Sydney Water, CSL and WorkCover, as well as the New South Wales Department of Commerce. The video highlights her experience with telecommunications infrastructure, corporate governance and government administration as reasons she could be considered for the role.

Timing of the potential leadership change

Rue is expected to step down from NBN Co in November 2024. The video notes that McKenzie’s current role is due to expire on 31 December 2024, creating a timing connection between the two events.

That timing does not confirm that McKenzie will become NBN Co CEO. At the time covered by the video, there had been no announcement naming Rue’s replacement. NBN Co’s next appointment will be closely watched because the organisation remains responsible for a national project affecting homes and businesses across Australia.