Vodafone CEO Nick Read is stepping down, the British telecoms firm announced Monday, following a four-year reign that saw the company’s share price drop dramatically.
According to a statement, Read will leave his position at the end of December after more than 20 years with the company.
He will be temporarily replaced by Vodafone’s chief financial officer Margherita Della Valle, who will stay in her existing position while Vodafone searches for a permanent replacement.
His unexpected resignation comes after Vodafone recently declared flat earnings for the first half of the year and an almost 20% slump in its share price this year.
“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,” noted Russ Mould, investment director at AJ Bell.
“Read’s final set of results last month did him absolutely no favours, as Vodafone downgraded full-year guidance.”
He departs with Vodafone in talks over merging its UK operations with rival Three UK, owned by Hong Kong-based CK Hutchison.
Vodafone believes the combination would hasten the development of 5G telecoms technology in the United Kingdom, which has been slowed in part by Britain’s ban on Chinese giant Huawei from participating in the technology, which offers higher download speeds than 4G.
Following Monday’s news, Vodafone’s share price remained unchanged at 91 pence.
“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,” noted Russ Mould, investment director at AJ Bell.
“Read’s final set of results last month did him absolutely no favours, as Vodafone downgraded full-year guidance.”
He was also put under pressure by Cevian Capital, a large activist investor that recently reduced 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”, said Victoria Scholar, head of investment at Interactive Investor.
