AT&T’s High-Level Departure Opens Door for Woman in No. 2 Spot
In an informal survey of analysts and former AT&T executives, two women emerged as the most likely candidates to replace Donovan.
(Bloomberg) -- John Donovan’s surprise decision to step down as head of AT&T Inc.’s communications business clears the way for a woman to take the role and become the highest-ranking female executive in the company’s 134-year history.
In an informal survey of analysts and former AT&T executives, two women emerged as the most likely candidates to replace Donovan. Lori Lee, chief executive officer Latin America for AT&T and the company’s global marketing officer, was most often mentioned. Susan Johnson, executive vice president of global connections and supply chain, was second.
Respondents also mentioned John Stankey, an AT&T lifer who now leads the WarnerMedia entertainment division, and Thaddeus Arroyo, CEO of AT&T Business, as possible candidates.
Whoever gets the job will take over AT&T’s largest business -- and take on big challenges, including the costly rollout of a new generation of wireless known as 5G. The technology promises faster speeds, richer videos and ultimately new services like self-driving vehicles.
As the No. 2 to Chairman and CEO Randall Stephenson, the winning candidate will also hold a key role in a financially constrained AT&T, following its $85 billion takeover of Time Warner. That deal helped boost total debt to more than $194 billion, though the company has made progress whittling the total down in recent quarters.
Stalled Growth
Donovan, 58, said Monday he plans to retire Oct. 1 after serving two years as Stephenson’s top deputy.
He oversaw a division -- including phone, broadband service and pay TV -- that generated 77% of AT&T’s revenue last quarter and 84% of its profit. But growth has all but evaporated for the hugely profitable wireless business, and the TV division lost a record 2.3 million video customers in the past year.
The company said Monday it will name Donovan’s replacement soon. It didn’t disclose a list of candidates.
AT&T has a long tradition of elevating internal candidates to executive positions, rather than going outside the Dallas-based company. Both Lee and Johnson have been with the carrier for more than 20 years.
Stankey, meanwhile, ran several businesses -- including AT&T’s entertainment and TV division -- before getting the WarnerMedia media assignment. In that role, he is working to integrate the recently acquired Time Warner, now called WarnerMedia into AT&T.
To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Rob Golum
©2019 Bloomberg L.P.