Pascal Desroches became senior executive vice president and CFO of AT&T in 2021–shortly before its divestiture of Time Warner to Discovery. An icon of the telecommunications industry, AT&T uses its network, labs, products, services, and people to create a world where everything works together seamlessly and life is better as a result. Its people and their passion to succeed are at the heart of what they do. The company is poised to connect millions of people with their world, delivering the human benefits of technology in ways that defy the imaginable.
Pascal and I recently connected to discuss his family’s path to achieving the American dream, what it takes to have a successful CEO-CFO relationship, thoughts on work-life balance, what it takes to be one’s best self personally and professionally, and more.
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Growing up in New York City, Pascal Desroches didn’t aspire to oversee financial strategy for a $122 billion telecommunications giant.
He just wanted to learn English.
His parents immigrated to the U.S. from Haiti with four kids ranging from two to 10 years old. Desroches was five and about to enter kindergarten.
Enrolling in the school system proved to be difficult, as he was learning English while trying to keep up with assignments. To help with the adjustment, his family learned English at their local church, which provided courses for adults and children. Although he doesn’t remember every detail from that period, it was formative in shaping his opinions about resolve and determination.
“I am so incredibly proud of my parents,” Desroches said. “No matter what I accomplish professionally, it will pale in comparison to what my parents did and the courage it took to immigrate to a country where they didn’t know the language. Those are things that help you gain a degree of confidence in your ability to overcome obstacles. That still sticks out in my mind, even though it’s more than 50 years later.”
The family thrived in their middle-class neighborhood, where Desroches and his siblings went to public school. He received his bachelor’s in accounting from St. John’s University, and his first job from Peat Marwick & Mitchell (now KPMG) followed.
Over 12 years, the company allowed Desroches to work on the audit practice. During that time, KPMG sponsored his MBA from Columbia, and Desroches was awarded a fellowship at the Securities and Exchange Commission (SEC), where he was a professional accounting fellow with the Office of the Chief Accountant.
When Desroches met the controller of Time Warner–also a former fellow at the SEC–they formed a rapport that opened the door to him joining Time Warner. Time Warner was acquired by AT&T, which led to his current role.
That might sound lucky, but it’s only luck in the context of the Roman philosopher Seneca’s often-attributed quote, “Luck is when preparation meets opportunity.”
Desroches joining the company in the wake of the merger meant that he was simultaneously sorting through old decisions and new priorities.
“Under the prior administration, AT&T had expanded beyond traditional telecommunication,” he explained. “We had a big wireless and broadband business, but we had acquired a television satellite company, DirecTV, and Time Warner Media Properties. When I joined as the CFO, AT&T was trying to reshape the company. John Stankey’s [AT&T’s CEO] goal was very clear. We had a company with a lot of debt–over $150 million. We had a $15 billion annual dividend obligation. We understood something had to change.”
They separated the DirecTV business, reduced their dividend, and undertook a significant plan to deleverage the company–all the things that got them where they are today.
“We are a company that has reduced its debt by over $40 billion,” Desroches said. “At the same time, this is a company that is growing earnings, revenues, subscribers, and cash. We’re doing all this while investing significantly in American telecommunication infrastructure. During John Stankey’s tenure as CEO, we have invested over $100 billion back into American telecom infrastructure, including nearly $40 billion in spectrum acquisitions that we did in 2021. In a fairly short period, we’ve totally repositioned AT&T back to its roots as one of the great telecommunication companies in the world.”
That title is not lost on Desroches, who understands the responsibility that comes with being a critical part of the global communications infrastructure. It’s a commitment that requires adaptability from everyone involved…all the way up to the CEO.
“One of the traits that I really admire [about John Stankey] and try to emulate is his courage,” he said. “What he did to reposition AT&T took an incredible amount of courage. He’s a longtime AT&T executive, and upon being named CEO, he did a 180 on the previous strategy that he was critical to formulating. He understood that the situation had changed and that we needed to do something different. Reducing the dividend took an incredible amount of courage because, for investors, that’s one of the main reasons they invest in AT&T.”
Desroches regards Stankey as one of the greatest leaders in North America. But he also didn’t expect to be working at AT&T when it acquired Time Warner. Their partnership represents an unexpected gift.
“When AT&T acquired Time Warner, I fully expected that I would leave and do something else,” Desroches said. “I didn’t expect to stay with AT&T. John said, ‘I’m new to the media business. I would love for you to stay and help me get my arms around this for a period.’ I said, ‘I’m going to be constructive here. This is a great company. I want to make sure that I position the company in the best possible way to succeed long term, with or without me.’”
Elements like trust, partnership, and mutual respect are critical to why the partnership works well. They were also able to have honest conversations about hard decisions. It solidified how he understood his role as CFO.
“As the CFO, you are the person who needs to be willing and consistently able to tell the CEO, the board, and even employees what’s not going well,” Desroches explained. “Having the confidence to do that and having a CEO who can accept that message is critically important for these partnerships to work. As a CFO, you must be comfortable not being popular–you must be comfortable speaking truth to power.”
When it comes to his own team and the teams he has built prior to AT&T, Desroches advises people to start with humility and admit that there is unknown information. He also doesn’t limit himself to looking at the people in front of him–he aspires to find the best possible person for a role.
Additionally, Desroches recognizes how important it is to maintain great networks.
“If you are good to people that you’ve worked with along the way, they will want to work for you again,” he said. “They’re going to recommend you to their friends. Some of the best hires I’ve had over the years have been people I either worked with before or said, ‘You want to work for him because he’s honest.” He will tell you exactly what he thinks. He will be an advocate for you. He will tell you the hard messages you need to hear to get better.’”
On that note, he also believes in the value of providing feedback.
“We all have opportunities to get better,” Desroches said. “Providing feedback on how somebody needs to improve to get better is the best possible gift you can provide. If you’re good at it, you can also help them by giving them the tools they need to get better–whether it is participating in a class outside of work, building a specific skill set, or just working with them on it. I remember having one of my team members who was going to present to the board for the first time. We did three separate dry runs. I did it because it was essential for me that they were comfortable and successful in putting their best foot forward.”
After all, board presentations come naturally to Desroches. In addition to being a CFO of a highly visible, publicly traded company, he is on the Federal Reserve Bank of Dallas Board of Directors, the United Way of Metropolitan Dallas’s Board of Directors, the Board of Trustees of Prep for Prep, and a member of the University of Texas Southwestern President’s Advisory Board.
It’s a demanding schedule, but Desroches knows that it can work because of some key elements.
“It takes a village,” he says. “It starts with having a life partner who understands and is supportive of your goals. My wife and I have been married for 35 years, and we have two young adult children. But you have to make time for yourself and ensure you are doing the things that are necessary to keep you replenished. It helps you to be at your very best and to give all that is required.”
Desroches knows himself–the things that keep him replenished are his relationship with his family and establishing solid workouts, eating, and sleep habits. They are all factors in his formula for being his best self; it’s how he is able to fulfill his various commitments.
Similarly, he encourages future CFOs to prioritize self-awareness. “Make sure you are aware of your strengths and the areas where you need bolstering,” Desroches said. “Surround yourself with people who complement you, who can challenge you, who can make sure that you are considering everything that is necessary to make the best possible decisions. Sometimes, that’s not as intuitive as it should be, but you really do need a great team who will push you, who will say, ‘I don’t agree, and here’s why.’ The willingness and the courage to listen to them is probably the best piece of advice I can give to aspiring CFOs.”