Vodafone CEO to step down after 10 years

  • Vodafone CEO to step down after 10 years

Vodafone CEO to step down after 10 years

It follows a 10-year managerial career in which the Italian businessman took the company from a consumer-focused mobile operator into a digital communications powerhouse, offering everything from cable TV to broadband and enterprise services.

Vodafone Group announced the resignation of CEO Vittorio Colao and appointment of Nick Read as the new CEO. An accountant by training, Read joined Vodafone in 2001 following senior finance roles at UBM Plc and FedEx Corp.

The Board of global telco Vodafone Group has revealed the succession plan for the role of Group Chief Executive.

Accendo Market analyst, Artjoma Hatsaturjants, "With positive results across the board, one would expect markets to react by buying the shares, and yet investors are clearly taking a dimmer view about the company's prospects with the CEO of 10 years on his way out".

Vodafone announced in a statement this morning that its chief executive Vittorio Colao will step down in October this year following a decade at the helm of the blue-chip telco. "Vittorio will leave as his legacy a company of great integrity with strong inclusive values that is exceptionally well-positioned for the decade ahead".

Read, who was previously the Group's Chief Executive for the Africa, Middle East and Asia Pacific region, joined the Vodafone Group board in April 2014.

"Nick has been the co-architect of the Group's strategy together with Vittorio", Kleisterlee said.

"Following the completion of Idea's equity raising in February 2018, under the terms of the merger agreement with Idea the Group intends to inject up to 1 billion euro (around Rs 7,500 crore) of incremental equity into India, net of the proceeds of the sale of a stake in the joint venture to the Aditya Birla Group (ABG), prior to completion", Vodafone said.

Vodafone Group Plc says that Read was chosen as the successor to Colao following an extensive search for a replacement CEO.

Commenting on the results, Colao said: "This was a year of significant operational and strategic achievement and strong financial performance".

"Our sustained investment in network quality supported robust commercial momentum", he added. Vodafone made the surprise announcement as it reported earnings and predicted potentially slower growth ahead on competitive pressures in Italy and Spain, causing the stock to drop the most since February.

"Now is the right time to begin the transition", Colao said on a call with reporters.