UPDATE 2-KPN CFO quits over new executive structure

* CFO quits, but will be available for consultation until March

* CFO objects to new governing structure announced in May

* CFO responsibilities to be divided in the interim

* Board said looking to fill post as soon as possible

* KPN shares down 3 pct in Dutch market down 0.4 pct (Adds detail from company, analyst comment, share reaction)

By Roberta Cowan

AMSTERDAM, Jan 3 (Reuters) - The chief financial officer of Royal KPN NV, the biggest telecoms operator in the Netherlands, has resigned with immediate effect after objecting to the group's new executive structure launched on Jan. 1.

KPN, which is struggling to reverse falling revenues, profits and market share in its fixed-line and mobile businesses, said on Tuesday that Carla Smits-Nusteling, who became CFO in September 2009, told the supervisory board "that she does not agree with the internal governance of the company in the new executive structure".

"The new management structure might compromise some of her executive authorities, handing over more power to the CEO, which could be the reason for her dissatisfaction," said analyst Jos Versteeg from Theodoor Gilissen.

"We will probably never know the real reason for her departure, but it's likely that she did not get along well with CEO Eelco Blok," Versteeg added.

Blok, a KPN insider, became chief executive in April and since then has announced cost cuts, new financial objectives and slashed 25 percent of the workforce.

In December the Dutch telecoms regulator and the competition authorities put KPN under investigation for possible breaches of regulatory law and price fixing, but KPN spokesman Stefan Hufton said Smits-Nusteling's resignation was not related to these investigations.

KPN shares were trading down about 3 percent at 9.049 euros at 0905 GMT, while the AEX was down 0.4 percent.

KPN said the new structure, which was announced on May 10, 2011, was intended to "enable a more direct control of the operational activities", with KPN's executive committee directing the company's operational activities.

In May the firm outlined objectives for the period 2011 to 2015 and said the strategic initiatives would be "supported by changes in management responsibilities and reporting lines", without further explanation.

"Following the May announcement, KPN has a new committee set up to deal with day-to-day responsibilities of running the business, and ultimately Carla decided that she personally didn't agree with it," Hufton told Reuters on Tuesday.

Smits-Nusteling was unavailable for comment.

"As a team, we will be able to head the different segments decisively and efficiently, enabling us to act on changing market dynamics and customer demands," CEO Blok said in a statement.

Chairman of the Supervisory Board Jos Streppel said the board regretted Smits-Nusteling's departure. The CFO responsibilities will be divided between two executives until a permanent replacement is found.

Smits-Nusteling will make herself available to KPN to help with the transition to a new CFO until the end of March, but she won't be responsible for implementing the new governance structure, according to Hufton.

The firm said that at her request she would not receive any severance payment and any short-term incentive earned for 2011 would be paid out as usual depending on the company's achievement of performance targets. Smits-Nusteling will receive neither short or long-term incentives for 2012, KPN said. (Additional reporting by Tjibbe Hoekstra, Editing by Will Waterman)