Royal KPN NV, the largest Dutch phone company, said ChiefFinancial Officer Carla Smits-Nusteling has stepped down because ofdisagreements about governance, the second departure of a boardmember in two months.

Eric Hageman, KPN's head for Belgium, and Steven vanSchilfgaarde, chief of the Dutch corporate business, will becomeinterim CFOs with immediate effect, the Hague-based operator saidin a statement today, adding that it's looking for a permanentreplacement as soon as possible. Smits-Nusteling, 45, will leaveApril 1. In November, KPN said that another board member, BaptiestCoopmans, will also leave on April 1.

Under the new executive structure announced in May, managementboard members meet directly with unit chiefs on matters thatconcern their respective business in an executive committee, saidStefan Simons, a KPN spokesman. The changes, which took effect thisyear, allow for more direct control and decision-making than theprevious procedure, where various unit boards reported to themanagement board, he said.