Vodafone CEO Nick Read to Step Down After 4-Yr Tenure, Telecoms Agency Says

Vodafone chief government Nick Read is stepping down, the British telecoms group stated Monday, after a four-year tenure marked by a steep fall within the firm’s share value.

Read will depart his position on the finish of December following greater than 20 years on the group, a press release stated.

He will probably be changed on an interim foundation by Vodafone‘s chief monetary officer Margherita Della Valle, who will proceed her present position whereas Vodafone seeks out a everlasting substitute.

His shock resignation comes after Vodafone lately introduced flat earnings for its first half and follows a close to 20-percent drop in its share value this 12 months.

“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,” Read stated within the assertion.

He departs with Vodafone in talks over merging its UK operations with rival Three UK, owned by Hong Kong-based CK Hutchison.

Vodafone believes a mixture would speed up the rollout of 5G telecoms know-how within the UK, which has been partly hampered by Britain banning Chinese big Huawei from involvement within the know-how providing quicker downloads than 4G.

Vodafone’s share value was flat at GBP 91 (roughly Rs. 9,000) following Monday’s announcement.

“With the shares languishing at their lowest levels in more than 20 years it is hard to describe departing Vodafone CEO Nick Read’s tenure as anything other than a disappointment,” famous Russ Mould, funding director at AJ Bell.

“Read’s final set of results last month did him absolutely no favours, as Vodafone downgraded full-year guidance.”

He additionally got here underneath stress from main activist investor Cevian Capital, which lately slashed its stake in Vodafone.

However, Read “helped to steer the telecoms giant through the challenges of the pandemic, aiding connectivity when individuals and households were forced to stay home during strict lockdowns”, stated Victoria Scholar, head of funding at Interactive Investor.