BT CEO Sir Peter Bonfield is to leave the company at the end of January.
In a statement issued today (31 October), Bonfield says that, after six years at the head of the company and with BT's restructuring process almost complete, he believes the time is right to leave.
There has been considerable pressure during the last few months from BT's institutional shareholders for the company to reshuffle its top management tier after a series of poor results.
BT's share price, which peaked at more than 1300p less than two years ago, now stands at around 340p.
Sir Christopher Bland has already taken over as chairman of BT, following the resignation of Sir Iain Vallance last May.
On leaving, Sir Peter is to get a year's salary plus a bonus and other benefits worth about £1.5m. Executive share awards could be worth another £290000.
"This is the right time to announce a change," said Sir Peter. "We have almost completed the very radical transformation programme which we started last year. A string of profitable and timely disposals, coupled with a successful rights issue, have helped us to reduce debt ahead of schedule."
BT has almost completed the demerger of its mobile division mmO2 which will start operating as a separate company on 19 November. In the last year, BT has also sold its directories business Yell for £2bn, disposed of £4.8bn worth of assets in Spain and Japan and had a £5.9bn rights issue.