Vodafone boss Nick Read to step down at end of year

Mobile phone giant Vodafone has revealed its boss Nick Read will step down at the end of the year just weeks after unveiling an £880 million plan to slash costs and warning over job cuts and price hikes.

Mr Read will leave on December 31 after four years as group chief executive, but will remain an adviser to Vodafone’s board until March 31.

The group said chief financial officer Margherita Della Valle will take on the role on an interim basis and alongside her current duties while it hunts for a new permanent boss.

It comes just weeks after Mr Read announced plans to cut costs by one billion euros (£880 million) and cautioned over job losses as part of a swingeing overhaul.

He said last month that prices would have to rise in the face of soaring energy bills and inflation, while also revealing that jobs were set to be impacted by aims to radically simplify the group, and accelerate the digitalisation of its operations.

Vodafone also trimmed its profit guidance range for the full-year and posted a 3% drop in interim earnings.

On announcing his departure, Mr Read said he had 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”.

Shares in Vodafone rose 2% after the announcement, with one analyst saying investors will be hoping that a change at the top will reinvigorate its share price.

Vodafone chairman Jean-Francois van Boxmeer said: “I would like to thank Nick for his commitment and significant contribution to Vodafone as group chief executive and throughout his career spanning more than two decades with the company.

“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.”

He added: “Margherita has recently been taking a broader operational role within the company and the board fully supports her as interim group chief executive.”

Vodafone said Mr Read will receive salary and benefits until March 31, after which he will receive an amount in lieu of his pay for the remainder of his 12-month notice period.

He will also remain eligible for a bonus for 2022-23, as well as outstanding long-term bonus share payouts.

Vodafone added it will pay up to £7,000 towards legal fees in connection with his departure and said he is entitled to “outplacement support” worth up to £50,000.

Ms Della Valle will be paid a salary of £1.1 million as interim chief executive and chief financial officer – in line with Mr Read’s current pay.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Investors will be hoping that a change at the top at Vodafone might inject a new longer-term lease of life in the company’s share price.

“Although any change of chief executive is unsettling, the restructuring strategy Nick Read headed up hasn’t yet reaped rewards.”