Chief executive resigns at Deutsche Telekom's T-Systems subsidiary

Lothar Pauly, chief executive of the IT services subsidiary of German telecommunications operator Deutsche Telekom, has quit his post.

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Lothar Pauly, chief executive of the IT services subsidiary of German telecommunications operator Deutsche Telekom, has quit his post.

Pauly, who heads the German telecoms giant's T-Systems Enterprise Services division is leaving T-Systems "by mutual consent" after asking to be relieved of his duties, the company said.

Chief financial officer Karl-Gerhard Eick will take over Pauly's duties at T-Systems until a replacement is found.

Pauly's departure comes at a difficult time for T-Systems, which has been seeking a strategic international partner to expand its footprint and increase sales. The unit provides IT services to about 60 multinationals and 160,000 smaller companies. Last year, it acquired Gedas, the former computer services subsidiary of German car maker Volkswagen, with subsidiaries around the world, including Brazil, China, Japan and the US.

Befpre taking up his post at T-Systems, Pauly led the communications division at Siemens from October 2004 to September 2005. The division is currently at the centre of a bribery investigation that has so far seen Siemens' two top guns head for the exit. Chief executive Klaus Kleinfeld said he was not available for a renewal of his contract a week after the resignation of Heinrich von Pierer, chair of the supervisory board.

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