Australia's Telstra names new CEO, chairman quits

SYDNEY, May 8 (Reuters) - Australia's dominant phone company, Telstra Corp(TLS.AX), named a new leadership on Friday, announcing a new chief executive and chairman, in a move expected to herald improved ties with its major investor, the government.

Telstra, which has spent years rowing with the government in efforts to maintain its market dominance, said senior executive David Thodey would replace outgoing chief executive Sol Trujillo, whose feisty reign will end next month.

Chairman Donald McGauchie, who had backed Trujillo in his tussles with the government, will also resign, to be replaced by board member Catherine Livingstone, effective immediately. Thodey, 54, has been a Telstra executive for eight years and is the firm's managing director of enterprise and government. (Reporting by Adrian Bathgate; Editing by Mark Bendeich)