ODAFONE shocked investors today when it suddenly parted company with chief executive Nick Read.
The immediate appointment of Margherita Della Valle as only “interim” CEO suggests the decision on Read was made quickly, since there is no successor lined up.
Read’s departure package is likely to be extensive. He hold 17.2 million Voadfone shares and was paid £4.1 million last year, and £3.5 million in 2021.
He is likely to get an exit package of around £4 million.
He joined Voda as finance director in 2001, becoming CEO of the UK arm in May 2006. He eventually replaced Vittorio Colao as group CEO in 2014.
Read MoreVodafone boss Nick Read to step down at end of yearFTSE 100 Live: Vodafone chief executive Nick Read to step downMobile and broadband firms urged to raise awareness of social tariffsSPONSORED
Why Chelsea has Christmas all wrapped upThe shares have struggled lately, down 60% in the last five years. They open today at 91p which has the business valued at £25 billion.
Vodafone said Della Valle will “accelerate the execution of the Company’s strategy to improve operational performance and deliver shareholder value”.
Read said: “I agreed with the Board that now is the right moment to hand over to a new leader who can build on Vodafone’s strengths and capture the significant opportunities ahead”.
Jean-François van Boxmeer, Chairman of Vodafone, said : “During his four years as CEO, he led Vodafone through the pandemic, ensuring that our customers remained connected with their families and businesses. He has focused Vodafone in Europe and Africa as a converged connectivity provider and led the industry in Europe in unlocking value from tower infrastructure.”
Vodafone shares have underperformed the market for at least five years.
